Imagination Park Technologies Inc (CSE:IP) (OTCMKTS:IPNFF), the augmented reality company, said Wednesday that it has closed its previously announced convertible debenture for an oversubscribed sum of $1.5 million.
The proceeds of the financing will be funneled into marketing, sales, and general corporate purposes, the company said.
In a statement, Imagination Park said the debentures will mature 24 months from the issue date, and bear interest at a rate of 12% per annum, payable in common shares at a price equal to the closing price on the day before the interest is due and payable.
READ: Imagination Park Technologies taps former Universal Music Group exec Mike Tunnicliffe as advisor
The debentures are convertible into units at $0.05 per unit. Each unit consists of one common share and one warrant exercisable at $0.10 for a period of three years from the date the debentures are issued.
The augmented reality company said the debentures may be converted by the holder at any time prior to maturity and they will automatically convert to units on 30-day notice if the shares trade at or above $0.20 for a period of 20 days at any time after four months and one day from the issued date.
The debentures and the units issuable on the conversion of the debentures will be subject to a statutory resale restriction for four months and one day from the date of closing.
On a separate note, the company said former Universal Music Group exec Mike Tunnicliffe, who was recently appointed as a senior advisor to Imagination Park CEO Alen Silverrstieen, will now sit on the board of directors.
Tunnicliffe previously was at the helm of Universal Music Group Brands (UMGB), a music strategy and partnerships group that works with UMG artists and their management teams. During his stint at Universal, Tunnicliffe worked with American Express, American Airlines, Honda, Citi and Marriott, as well as artists like Keith Urban and Nick Jonas.
“Mike brings a tremendous track record of success in the Music and Entertainment Market for decades,” Silverrstieen said earlier. “Working with high-profile musical artists and entertainment properties is the perfect avenue for delivering Augmented Reality experiences to fans around the globe.”
Imagination Park has developed ImagineAR.com and its augmented reality-as-a service model for desktops that enables businesses of all sizes to implement their own AR campaigns without any prior programming or technology experience. All the customer has to do is point their mobile device at a chosen logo, building or other landmark and the area comes to life with interactive content that blends together the real and the digital.
The company’s integrated real-time analytics means that all customer interaction is tracked and measured in real-time. The ImagineAR.com mobile app is available in both the IOS and Android mobile app stores.
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