WOW Unlimited Media Inc. Announces Closing of First Tranche of Non-brokered Private Placement of Unsecured Convertible Debentures

VANCOUVER, British Columbia, Nov. 17, 2020 (GLOBE NEWSWIRE) -- WOW Unlimited Media Inc. (“WOW!” or the “Company”) (TSXV: WOW; OTCQX: WOWMF) is pleased to announce that it has closed the first tranche (the “First Tranche Closing”) of its previously announced non-brokered private placement offering of unsecured subordinated convertible debentures (the “Debentures”) for gross proceeds of $2,639,000. WOW has also received irrevocable subscriptions for an additional $2,061,000, for a total offering size of $4,700,000 (the “Offering”), representing a $200,000 upsize due to increased demand since the Company’s first announcement of the Offering on October 28, 2020.

Pursuant to the First Tranche Closing, WOW! issued 2,639 Debentures at an issue price of $1,000 per $1,000 principal amount of Debentures.

The Debentures were issued pursuant to the terms of a debenture indenture entered into between the WOW! and Computershare Trust Company of Canada (the "Debenture Indenture") and will mature on the date that is 36 months from the issuance date. Each Debenture bears interest at a rate of 9.5% per annum from the date of issue, payable in equal quarterly payments on March 31, June 30, September 30 and December 31 in each year commencing December 31, 2020.

Pursuant to the terms of the Debenture Indenture, each Debenture is convertible, at the option of the holder, into common shares of the Company (“Shares”) at any time prior to the close of business on the earlier of: (i) the last business day immediately preceding the maturity date; and (ii) the date fixed for redemption, at a conversion price of $0.55 per Share. The Debentures will be subordinated to the senior indebtedness of the Company; however, the Debentures will rank pari passu with each other series of debentures issued under the Debenture Indenture or under indentures supplemental to the Debenture Indenture (regardless of their actual date or terms of issue) and, except as prescribed by law, with all other existing and future unsecured indebtedness of the Company other than senior indebtedness. The Debentures are redeemable at any time after 12 months from the date of issuance at a redemption price equal to the principal amount of the Debentures plus accrued and unpaid interest thereon.