SAINT JOHN, NEW BRUNSWICK--(Newsfile Corp. - August 5, 2016) - Stompy Bot Corporation (CSE: BOT) (the "Corporation") is pleased to announce a non-brokered private placement for aggregate gross proceeds of up to $200,000 in principal amount of secured convertible debentures (the "Debentures") at a price of $1,000 and integral multiples thereof per debenture (the "Offering"). The Offering will consist of the issuance of an aggregate of up to 200 Debentures, with each $1,000 Debenture consisting of 8,000 common share purchase warrants (the "Warrants"). Each Warrant shall entitle the holder thereof to acquire one (1) common share in the capital of the Corporation at a price of $0.05 per common share (the "Warrant Shares") for two (2) years from the date of issue. The Debentures will have an interest rate of 12% per year, calculated semi-annually from their date of issuance and will mature on the date that is one (1) year from the date of issuance (the "Maturity Date"). At the option of the holder, principal under the Debenture is convertible (the "Conversion") into common shares of the Corporation (the "Conversion Shares") at a conversion price of C$0.05 per Conversion Share. Certain insiders of the Corporation may participate in the Offering.
The Corporation has completed the first tranche ("First Tranche") of the Offering issuing 85 Debentures and 680,000 Warrants raising gross proceeds of $85,000. Proceeds raised from the Offering will be used to fund the development of the Corporation's video games, and for general working capital purposes.
The Corporation also announces that further to its news release dated May 6, 2016, the Corporation has settled an aggregate of $47,791.14 of indebtedness owed to certain arm's length creditors who provided services in connection with developing the Corporation's video games, through the issuance of an aggregate of 955,822 common shares of the Corporation at a price of $0.05 per common share.
In addition, the Corporation has also reached an agreement with arms-length and non-arm's length debt holders to settle an aggregate of $175,654.45 of debt through the issuance of 3,513,089 common shares of the Company at a price of $0.05 per common share (the "Debt Settlement").
The Debenture, the Warrants, the Conversion Shares issuable upon any principal Conversion, the Warrant Shares issuable upon exercise of the Warrants and the common shares issued in connection with the Debt Settlement are subject to a statutory four month and one day hold period.
Following completion of the Debt Settlement, the Corporation also intends to grant to certain directors, officers, employees and consultants of the Corporation, in accordance with the terms of the Corporation's stock option plan, an aggregate of 3,530,000 options to purchase common shares of the Corporation exercisable at a price of $0.05 per common share for a period of ten years.
About Stompy Bot Productions
Stompy Bot Productions is a wholly owned subsidiary of publicly traded Stompy Bot Corporation (CSE: BOT) - an independent video game and digital media publisher. Stompy's growth strategy is to become a premier independent multimedia publisher. Their indie philosophy is to identify and acquire unique video game properties, apply innovative technologies, game development expertise, partner with movie studio resources and manage entertainment brands through a global media marketing approach. Stompy Bot is the exclusive Heavy Gear digital games license holder and publisher of Heavy Gear Assault, a next generation PC title using Epic Game's latest Unreal Engine 4 technology. For more information visit www.stompybot.com.
Certain information set forth in this news release may contain forward-looking information that involve substantial known and unknown risks and uncertainties. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, the impact of general economic conditions, industry conditions, and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking information. The parties undertake no obligation to update forward-looking information except as otherwise may be required by applicable securities law.
Stompy Bot Corporation