09:57:16 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Tangelo Games Corp
Symbol GEL
Shares Issued 180,668,880
Close 2017-11-24 C$ 0.03
Market Cap C$ 5,420,066
Recent Sedar Documents

Tangelo Games amends senior credit terms

2017-11-27 08:38 ET - News Release

Ms. Isabel Guerrero reports

TANGELO GAMES AND LENDER AMEND DEBT FACILITY; COVENANTS REDUCED AND MATURITY EXTENDED

Tangelo Games Corp. 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 Nov. 16, 2015, among the company, as borrower, the subsidiaries of Tangelo, as credit parties, a syndicate of lenders, and the lenders' administrative agent, Third Eye Capital Corp. (TEC).

The company and its subsidiaries have entered into a waiver and 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 have been extended to April 30, 2019 (previously Jan. 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 $1-million (U.S.) 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 million non-transferable 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, chief executive officer 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 Corp.

Tangelo Games, 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 on-line 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.

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