ParcelPal Technology (CSE:PKG) agrees to equity line of credit facility

• Courier company ParcelPal Technology (PKG) has entered into a financing agreement with Tangiers Global, for an equity line of credit
• The equity credit line has a maximum term of 36 months, and is worth US$5 million (approximately C$6.35 million)
• Under a related Investment Agreement, ParcelPal will occasionally issue its common shares to Tangiers at a reduced trading price
• The company will use the proceeds to grow its existing operations, and expand into new areas such as potential acquisitions
• ParcelPal Technology is up 8.82 per cent and is currently trading for $0.18 per share

Courier company ParcelPal Technology (PKG) has entered into a financing agreement with Tangiers Global, for an equity line of credit.

This latest financing agreement is pursuant to the terms of an Investment Agreement and a Registration Rights Agreement. The equity credit line has a maximum term of 36 months, and is worth US$5 million (approximately C$6.35 million).

Under the related Investment Agreement, ParcelPal will be able to occasionally issue its common share to Tangiers at a reduced trading price.

The purchase price of common shares that the company may sell to Tangiers will be 85 per cent of the lowest volume weighted average price of ParcelPal common shares during the five consecutive trading days following the Put Notice. 

There will also be a limit on the number of common shares that the company can put to Tangiers each time it delivers a Put Notice. 

ParcelPal’s CEO, Rich Wheeless, commented on how the company will use the proceeds of the financing agreement with Tangiers Global.

“This equity line facility provides the company with a viable long-term platform to both grow its existing operations, develop other business activities under current consideration, and expansion into new areas as well as potential acquisitions,” he said.

“The company is always mindful of the best interests of its shareholders and any utilisation of this facility, including to capitalise on potential business opportunities,” he added.

Rich went on to say that the company looks forward to finishing out the year strong, and maintaining momentum into 2021. 

ParcelPal Technology is up 8.82 per cent and is trading for $0.18 per share, as of 10:56am EST.