Tangelo Games and Lender Amend Debt Facility; Covenants Reduced and Maturity Extended
Toronto, Ontario, November 27, 2017 – Tangelo Games Corp. (“Tangelo” or the “Company”) (TSX-VENTURE: GEL), a leading publisher of social casino games, has reached an agreement with its lenders to amend certain terms of its senior secured credit agreement. Tangelo previously completed a secured debt financing pursuant to an amended and restated credit agreement dated November 16, 2015 (as amended, the “Credit Agreement”) among the Company, as borrower, the subsidiaries of Tangelo, as credit parties, a syndicate of lenders (the “Lenders”), and the Lenders’ administrative agent, Third Eye Capital Corporation (“TEC”).
The Company and its subsidiaries have entered into a waiver and amendment (the “Amendment”) to the Credit Agreement with the Lenders, waiving breaches by the Company of certain covenants and amending or deleting certain covenant thresholds for future periods. Pursuant to the Amendment, Tangelo’s obligations to repay the principal under the Credit Agreement has been extended to April 30, 2019 (previously January 30, 2018).
The Lenders also agreed to allow Tangelo to: (i) capitalize all of the accrued monthly interest for the months of September and October 2017; and (ii) capitalize up to half of the monthly interest under the Credit Agreement starting in November 2017.
As consideration for these amendments, among other things, the Company agreed to pay to the Lenders a US$1,000,000 fee, to be capitalized and added to the principal owing under the Credit Agreement. Additionally, the Company has agreed to amend the term of the 35,000,000 non-transferrable warrants (the “Warrants”) issued by the Company to the Lenders to expire April 30, 2019 contemporaneous to the new maturity date of the Facility. The Amendment is subject to certain conditions, including, but not limited to, approval by the TSX Venture Exchange of the amendment to the term of the Warrants.
James Lanthier, CEO of Tangelo, commented:
“Tangelo is pleased to announce this amendment to its debt facility with our partners Third Eye Capital. Extending the maturity, reducing our range of covenants and giving us flexibility on debt service better enables the Company to execute on its strategic plan.’
About Tangelo Games
Tangelo Games Corp., the parent company of Diwip and Akamon, formerly known as Imperus Technologies Corp., is a developer of social and mobile gaming for PC, Mac, iOS and Android platforms. Diwip and Akamon design, develop and distribute their top ranked social casino-themed games within online social networks (such as Facebook) and mobile platforms (such as Android and iPhone). All of the Diwip and Akamon games are free to play and generate revenue primarily through the in-game sale of virtual coins.
Caution Regarding Forward-Looking Information:
Certain statements in this press release may constitute “forward-looking information” which involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this press release, such forward-looking information may use such words as “may”, “will”, “expect”, “believe”, “plan” and other similar terminology. Forward-looking information includes, but is not limited to, statements regarding the Amendment, the extension of the term of the Warrants and the business of the Company. Forward-looking information is provided for the purpose of presenting information about management’s current expectations relating to the future events and the operating performance of the Company, and readers are cautioned that such information may not be appropriate for other purposes. The forward-looking statements involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, regulatory requirements, general economic, market or business conditions and future developments in the sectors of the economy in which the business of Tangelo operates. The foregoing list of factors is not exhaustive. Please see the Company’s short form prospectus dated March 27, 2015, the Company’s Annual Information Form dated November 11, 2015 and other documents available on www.sedar.com, for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward-looking information, whether a result of new information, future results or otherwise, except as required by law.
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