VANCOUVER, British Columbia, Sept. 23, 2019 (GLOBE NEWSWIRE) — LiteLink Technologies Inc. (“LiteLink”)(CSE:LLT) (OTC:LLNKF)(FRA:C0B), a key player in logistics platforms and payment solutions, is pleased to announce that its wholly-owned subsidiary uBUCK Technologies SEZC (“uBUCK”), will conduct a non-brokered private placement of up to 8,000,000 preferred shares, at a price of US$0.50 per share for aggregate gross proceeds up to US$4,000,000 based on a pre-money valuation of US$25,000,000.
uBUCK intends to use the proceeds of the private placement to complete the development of the uBUCK and Streambucks digital wallets, accelerate growth and increase customer acquisitions.
The closing of the initial tranche of $400,000 of the offering is scheduled to occur on or about September 30, 2019. Under the terms of the offering, uBUCK expects an initial investment milestone of US$1,500,000 will be made in exchange for 3,000,000 preferred shares at a price of US$0.50 per share by June 30, 2020. Following the first milestone installment of US$1,500,000, the investor will have the option, until September 30, 2021, to invest an additional US$2,500,000 for a total of 8,000,000 preferred shares at a price of $0.50 per share.
The private placement is a non-dilutive transaction for LiteLink shareholders. The transaction will be subject to all necessary regulatory approvals and may close in one or more tranches. The first tranche is expected to close on or about September 30, 2019.
The initial investment of US$1.5 million would give the investor a 6% ownership in uBUCK. An additional US$2.5 million investment would result in a 16% ownership of the uBUCK. The preferred shares come with first rights to dividends of 6% (of the amount invested) and first claims to assets up to the investment in case of liquidation.