TORONTO, July 29, 2019 – Flow Capital Corp. (TSXV: FW) is pleased to announce that it has received repayment of its USD $2,000,000 note from Universal mCloud Corp. (TSX-V: MCLD) (OTCQB: MCLDF) (“mCloud”).
In January 2019, Flow Capital closed the sale of its Royalty Agreement with Agnity Global (“Agnity”) to mCloud for the purchase price of USD $153,227 paid at close, and USD $2,000,000 in the form of a senior secured note for a term of up to twelve months, paying monthly interest of USD $41,667 and upon repayment, CAD $525,000 or 1.5 million mCloud shares. As of today, Flow Capital has received the repayment of the USD $2,000,000 senior secured note and 1.5 million shares of mCloud.
Total cash returns from the Agnity and mCloud agreements exceed USD $3,900,000 on a USD $2,750,000 investment. In addition to the 1.5 million mCloud shares received pursuant to the note repayment, Flow Capital will earn another 3.5 million shares if certain milestones are met by January 2025.
“This deal was a win-win for Flow and mCloud,” said Robb McLarty, Chief Investment Officer of Flow Capital. “We are pleased with this outcome and have locked in a 1.43X cash return, and retained significant upside potential through mCloud shares given mCloud’s impressive growth in the AI-assisted infrastructure management space. We are pleased to remain investors and congratulate mCloud for its recent fundraise and acquisition of Autopro.”
About Flow Capital
Flow Capital Corp. is a diversified alternative asset investor and advisor, specializing in providing minimally dilutive capital to emerging growth businesses. To apply for financing, visit www.flowcap.com.
For further information, please contact:
Flow Capital Corp.
Alex Baluta
Chief Executive Officer
alex@flowcap.com
1 Adelaide Street East, Suite 3002,
PO Box 171,
Toronto, Ontario M5C 2V9
Certain statements herein may be “forward-looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Flow or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof and Flow assumes no obligation, except as required by law, to update any forward-looking statements to reflect new events or circumstances.
