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Universal mCloud Corp

Universal mCloud to raise C$10 million in convertible debentures

The convertible debentures are priced at C$100 each and will carry an annual interest rate of 10%

raining money
The company will use the money to pay outstanding cash obligations for its acquisition of Flow Capital's royalty in Agnity Global

Universal mCloud Corp.(CVE:MCLD)(OTCMKTS:MCLDF) announced Thursday a private-placement offering of up to C$10 million of convertible unsecured subordinated debentures.

The company said the debentures are priced at C$100 per debenture and will carry an annual interest rate of 10%.

Universal mCloud said it plans to use the net proceeds to satisfy outstanding cash obligations for its acquisition of Flow Capital Corp.'s royalty interest in Agnity Global as well as the proposed acquisition of CSA Inc.

READ: Finance executive Chantal Schutz joins Universal mCloud team as EVP and CFO

In addition, the Vancouver, British Columbia-based company said it will use the money to fund ongoing working capital requirements and the expansion of its international operations.

The principal amount of the debentures will be convertible into units at the option of the holder at a conversion price of C$0.50 per unit. And each unit will be comprised of one common share and one purchase warrant, which will be exercisable to acquire one common share at an exercise price of C$0.75 per share, according to a statement.

Universal mCloud uses artificial intelligence and analytics to combat energy waste while maximizing energy production from critical infrastructure.

The company's stock recently traded down 2.3% to C$0.42 a share in Toronto.

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Quick facts: Universal mCloud Corp

Price: $0.37

Market: TSX-V
Market Cap: $55.75 m
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