TORONTO, March 11, 2019 (GLOBE NEWSWIRE) -- Menē Inc. (TSX-V:MENE) (OTC: MENEF) (“Menē” or the “Company”), an online 24-karat jewelry brand, is pleased to announce that it has completed its previously announced debt financing (“Debt Financing”) with a strategic lender (the “Lender”).
Under the Debt Financing, the Lender has purchased, on a non-brokered private placement basis, a 3.0% secured non-convertible note of the Company with a CDN$20,000,000 aggregate principal amount due March 8, 2021 (the “Note”). The Lender also acquired under the Debt Financing 15,000,000 free-trading subordinate voting share (“Class B Share”) purchase warrants in the capital of the Company (the “Warrant”). Each Warrant entitles the holder thereof to purchase a Class B Share (a “Warrant Share”) at a price of $1.00 per Warrant Share until November 29, 2020.
The Note will bear interest at a rate of 3.0% per annum, payable semi-annually in arrears and will mature on March 8, 2021 (“Maturity Date”). The Lender may elect to receive repayment of the outstanding aggregate principal of the Note in cash or 24-karat gold bullion ‘in kind’ valued at the spot price as at the day the Lender provides notice to the Company to receive repayment ‘in kind’.
The Note will be secured by the Company’s finished inventory of 24-karat gold and platinum jewelry, all accounts receivables, deposit accounts, cash and proceeds of the foregoing.
Menē intends to use the net proceeds of the Debt Financing to expand inventory and for working capital purposes.
The distribution of the Warrants and Warrant Shares were qualified by way of short form prospectus dated December 18, 2018 which contains important information relating to the Debt Financing and the related “bought-deal” financing, which closed on December 21, 2018. A copy of the final prospectus is available on the SEDAR website at www.sedar.com.
About Menē Inc.
Menē crafts pure 24 karat gold and platinum jewelry that is transparently sold by gram weight. Through mene.com, customers may buy jewelry, monitor the value of their collection over time, and sell or exchange their pieces by gram weight at prevailing market prices. Menē was founded by Roy Sebag and Diana Widmaier-Picasso with a mission to restore the relationship between jewelry and savings. Menē empowers consumers by marrying innovative technology, timeless design, and pure precious metals to create pieces which endure as a store of value.
For more information about Menē, visit mene.com.
Warning
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available. This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America.
Forward-Looking Statements
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities laws that are based on expectations, estimates and projections as at the date of this news release. The information in this release about the Debt Financing, the Company’s anticipated use of the net proceeds of the Debt Financing, and the future plans and objectives of the Company are forward-looking information.
Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information and are intended to identify forward-looking information.
This forward-looking information is based on reasonable assumptions and estimates of management of the Company at the time it was made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the expected expenditure of the proceeds of the Debt Financing, and the Company’s objectives, goals or future plans in respect of the use of proceeds; global economic climate; dilution; the Company’s limited operating history; future capital needs and uncertainty of additional financing; the competitive nature of the industry; currency exchange risks; the need for the Company to manage its planned growth and expansion; the effects of product development and need for continued technology and manufacturing change; protection of proprietary rights; the effect of government regulation and compliance on the Company and the industry; network security risks; the ability of the Company to maintain properly working systems; theft and risk of physical harm to personnel; reliance on key personnel; global economic and financial market deterioration impeding access to capital or increasing the cost of capital; and volatile securities markets impacting security pricing unrelated to operating performance. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to revise or update any forward-looking information other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT: Media and Investor Relations Inquiries: Renee Wei +1 647 494 0296 ir@mene.com