Urbanimmersive Strengthens Its Financial Position Through New Funding and Debt Repayments Deferral

SAINT-HUBERT, Quebec, June 28, 2023 (GLOBE NEWSWIRE) -- Urbanimmersive Inc. (“Urbanimmersive,” the “Company” or “UI”) (TSV-V UI) (OTCQB: UBMRF) is pleased to announce today having completed a non-brokered private placement of 11,538,461 units at a price of $0.065 per unit for net proceeds of $750,000. Each unit consists of one common share of the Company and a warrant entitling the holder to purchase one additional common share of the Company at a price of $0.10 per share until June 27, 2026. The net proceeds should be used for working capital and general purposes. The units issued under this private placement are subject to a hold period of four months and one day until October 28, 2023. No commissions were paid. The closing of this arm's length private placement is subject to the approval of the TSXV and other customary conditions.

Furthermore, the Company has reached an agreement with its bank to restructure its two main term loans (balance of $2.6m as of today) and was thus able to obtain 1) a capital repayment moratory until February 2024 inclusively and 2) that a portion (5.50%) of the interests payable monthly to rather be capitalized to the loans until maturity in June 2024.

The Company has also reached an agreement with its principal financial partner and shareholder to restructure its promissory note (face value of $6.5m) related to the acquisition of HomeVisit so that 50% is payable no later than October 19, 2027 and 50% is payable no later than October 19, 2030. In addition to the annual interest of 7.50% capitalized to the promissory note, all integration costs charged to the Company (~ US$224k) by the Seller will be capitalized to the promissory note as well. The annual interest will now be calculated on the face value of the promissory note (initially $6.5m) to exclude capitalized interest in the calculation. This written agreement is subject to the finalization of the legal documentation and any other conditions required by the regulatory authorities.

The principal repayment moratory and the interest relief obtained on the two main term loans as well as the restructuring of the promissory note should allow the Company to free up to > $1.0m of liquidities over the next 12 months and ~ $1.5m over the next 5 years. By combining these creditor reliefs, the rationalization of personnel and the optimization of operations carried out over the last couple of months and the private placement of $750k, the Company should be able to free up cash of nearly $4.0m over the next 12 months. All those measures should, among other things, allow the Company to rebalance its working capital and strengthen its financial position in general, while remaining resolutely focused on growing its business further.