The firm, a leading provider of asset management solutions combining IoT, cloud computing, artificial intelligence (AI) and analytics, said the proceeds of the loan will be used to fund the repayment of certain outstanding notes of the company related to its recent acquisition of Autopro Automation Consultants Inc., which was previously announced on July 11, 2019, and for working capital purposes.
The loan has a term of seven years at an interest rate of 6.85% per annum. Universal mCloud said it will make blended monthly payments of principal, based on a twelve year amortization schedule, and interest.
The loan is secured against the assets of Autopro and certain other assets of mCloud.
In addition, the company said it intends to settle a debt owed to GBCC Corporation, mCloud's advisor on Chinese market expansion opportunities with major building and wind turbine operations, in the amount of C$60,000 through the issuance of common shares of the company at a price per share to be determined by its board of directors.
The issuance of the common shares to the creditor is subject to the approval of the TSX Venture Exchange and all securities issued will be subject to a four-month hold period under applicable securities laws.
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