SAINT-HUBERT, QC, March 9, 2021 /PRNewswire/ - Urbanimmersive Inc. ("Urbanimmersive," the "Company" or "UI") (TSXV: UI) (OTCQB: UBMRF) is pleased to announce today having delivered a notice to force the conversion of the remaining principal amount of its 10.0% convertible debentures and accrued and unpaid interests.
The terms and conditions of the convertible debentures enable the Company to force their conversion to common shares of the Company as long as the market performance of the Company's stock price meets specific metrics described in the debenture indenture. Effective as of March 8th, 2021, these metrics were fully met, thus the Company is able to move forward with the forced conversions as described herein.
By including the committed debenture conversions announced on February 25, 2021 with some of the major debenture holders totaling $2.3 million, an aggregate principal amount of $3.1 million will be converted (conversion price of $0.125) resulting in the issuance of approx. 24.6 million common shares, subject to adjustments to reflect the number of common shares issued in respect of the accrued and unpaid interests on the debenture. This conversion, in addition to the $1.5 million debenture conversion in November 2020, equals a total principal amount of $4.5 million converted into common shares and represents an interest saving of $450k per year. These debenture conversions are expected to be all completed by the end of this month.
"Over the last year, we have been focusing on strengthening our balance sheet and this conversion is one of the key milestones in that regards. To be in a position to eliminate the interest payments associated with such debentures and the removal of these liabilities from our balance sheet further strengthen our financial position and increase our profitability. This also eliminates the necessity of its principal repayment as these debentures were approaching maturity next year. Finally, this should provide us a lot more financial flexibility when approaching new development projects of all kinds", stated Simon Bedard, CFO of Urbanimmersive.
TSX Venture Exchange has not reviewed this press release and has neither approved nor disapproved the contents of this press release.
Urbanimmersive is a SaaS business management solution that provides mission-critical solutions to visual content providers serving the real estate residential, commercial, construction, and local business markets. Urbanimmersive' platform helps customers to increase operational productivity and delivering the full potential of visual content creations through leading-edge websites builder tool, AI-backed image indexing, robust file transfer systems, and interactive visual technology solutions. The firm's core technology is a 3D emulator powered by a visual content recognition post-production algorithm that delivers online and offline alternatives to traditional 3D engines for the creation of immersive digital environments. Learn more at urbanimmersive.com.
Caution of Forward-Looking Statements
Certain statements in this news release, other than statements of historical fact, are forward-looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature. These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management estimates or opinions change.
SOURCE Urbanimmersive Inc.