- Courier company, ParcelPal Technology (PKG) has issued an unsecured convertible note worth approximately C$699,600 to an investor
- The company issued the convertible note shortly after completing a non-brokered private placement
- Most of the note amount will be convertible into ParcelPal common shares before the maturity date, at eight cents each
- Financing proceeds will fund ParcelPal’s expansion plans, which include becoming a US-reporting company, an OTC listing, and additional fleet vehicles
- ParcelPal Technology (PKG) remains unchanged and is currently trading at 7.5 cents per share
Courier company, ParcelPal Technology (PKG) has issued an unsecured convertible note worth approximately C$699,600 to an investor.
The company issued the convertible note shortly after completing a non-brokered private placement.
Just under C$200,000 was advanced to ParcelPal upon the closing of the private placement, with approximately C$9,990 retained by the Noteholder through an original issue discount (OID).
This was for expenses related to the private placement, and for the issuance of 150,000 restricted common shares to the noteholder, as investment incentive shares.
ParcelPal will fund an aggregate amount of approximately C$466,000 to the noteholder in two tranches. The first and second tranches of approximately C$233,000 will be provided within 30 and 60 days respectively.
Most of the Note amount will be convertible into common shares in ParcelPal before the maturity date, six months after the funding. The conversion will occur at eight cents per share.
After the deduction of fees, expenses, and issue discounts payable by the company, the financing’s net proceeds will fund ParcelPal’s expansion plans. These include costs associated with the acquisition of additional fleet vehicles and entering a property lease agreement for a storage and fulfilment warehouse.
Funds will also go towards other company endeavours, such as becoming a US-reporting company and listing securities on the Over-the-Counter (OTC) market.
ParcelPal’s CEO, Rich Wheeless, said the financing comes at a pivotal time for the company, as it continues to surpass milestones and expand beyond initial projections.
“This financing provides immediate capital for undertaking adding numerous new vehicles to our fleet to service the increased business.
“Given the current global crisis and shaky market conditions, we are fortunate to be in the position that the company is in to provide needed services at this critical time, and to implement a plan to continue debuting in new markets.
“I am also very pleased with the recent improved operating performance, and looking forward to the continued trend,” he said.
ParcelPal Technology (PKG) remains unchanged and is trading at 7.5 cents per share at 11:39am EDT.