Advantego Corporation Obtains $5 Million Equity Line
DENVER, CO / ACCESSWIRE / June 18, 2018 / Advantego Corporation (OTCQB: ADGO) today announced that it has executed an agreement with Tangiers Investment Group, LLC of San Diego for a $5 million equity line of credit to support its plans for growth. Also, the Company plans to file an S-1 public registration statement with the SEC to issue up to 2,500,000 Common Shares.
“This long-term funding facility on favorable terms combined with our current finance partners addresses our capital needs for the next phase of our growth,” according to Advantego CEO Robert W. (Rob) Ferguson. “There is no obligation to draw down funds at any specific time during the three-year commitment from Tangiers,” he pointed out.
Ferguson also said, “We have a variety of products and services that have already been integrated with our Intelligent Solutions Platform and are ready for roll-out. This agreement will allow us to incrementally expand our sales and marketing efforts into various sectors while simultaneously providing the support services necessary to maximize sales and customer retention.”
“It will also provide our corporate finance ambitions with a healthy stand-by capital facility to support any immediate licensing arrangements for additional emerging technologies and possibly strategic acquisitions that fit into our business model,” Ferguson pointed out.
Under the equity line agreement, Tangiers will provide the Company with up to $5,000,000 through the purchase of shares of the Company’s Common Stock. The minimum amount the Company can draw down at any one time is $5,000; and the maximum amount the Company can draw down at any one time is $350,000, as determined by the formula contained in the equity line agreement.
The amount to be paid by Tangiers on a particular Closing Date will be determined by multiplying the Purchase Price by the number of shares specified in a Put Notice. The Purchase Price is 82.5% of the lowest volume weighted average trading price of the Company’s Common Stock during the Pricing Period applicable to the Put Notice.
The Company issued a Promissory Note to Tangiers for the principal sum of $50,000 as a commitment fee for the equity line. The Note bears interest at 10% per year, is unsecured and is due on January 11, 2019. At the option of Tangiers, all or any part of the unpaid principal amount of the Note may be converted into shares of the Company’s Common Stock. The number of shares to be issued on any conversion will be determined by dividing the principal amount of the Note to be converted by $1.44.
About Advantego Corporation
Advantego Corporation (OTCQB: ADGO) designs, develops and implements digital communications and intelligent software solutions as a specialized Business Process as a Service (BPaaS). The Company’s products and services are provided through its wholly-owned operating subsidiary, Advantego Technologies Inc., which leverages its proprietary “Intelligent Solution Platform.” This platform combines existing data and systems and integrates “best in class”, third-party technologies to provide a comprehensive, managed solution that significantly enhances internal operations and marketing efficiency. These elite, custom business solutions are available to large enterprises, affiliate networks and franchise operators as all-inclusive, managed bundled services. The Company also offers a variety of stand-alone products specific to targeted industries. Website: www.advantego.com .
This news release may contain forward-looking statements within the meaning of the Securities Act. As a general matter, forward-looking statements may reflect our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business.
These statements may be identified using forward-looking terminology such as “may”, “will”, “expects”, “plans”, “estimates”, “anticipates”, “projects”, “intends”, “believes”, “outlook and similar expressions. The forward-looking statements contained in this news release are based upon our historical performance, current plans, estimates, expectations and other factors we believe are appropriate under the circumstances. The inclusion of this forward-looking information is inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking: our business and investment strategy; our projected operating results; estimates relating to our ability to make distributions to our stockholders in the future and economic trends.
GREG McANDREWS & ASSOCIATES
Gregory A. McAndrews
SOURCE: Advantego Corporation