Investview, a global distributor of financial education tools, content, research and technology, has entered into a securities purchase and intellectual capital transaction with a financial services and technology investment fund to purchase $11 million of its common stock in a private placement. The terms of the share purchase agreement are itemized in the 8K filed April 29th, 2020.
The shares of common stock are offered through a Convertible Secured Promissory Note (“Note”). As a key term of the agreement, INVU will acquire the proprietary Prodigio SMART Trading System and its software IP.
The gross proceeds to the Company from the registered direct offering private placement are expected to be approximately $11 million before an estimated $50,000 in offering expenses. The Company intends to use the proceeds to acquire and expand automated algorithms in the world markets, which supports its RIA and Fintech Brokerage initiatives to purchase additional equipment, further the development of liquid immersion for high powered computing applications and to reduce company debt.
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The purchase is structured over a series of closing dates of which the first closing was completed and released $1.3 Million in funds with the second closing, subject to certain conditions, to take place on or before May 28th, 2020 and releases an additional $700 thousand in funds. The company has successfully negotiated the settlement of $2.4 Million of short-term debt for $1.1 Million. The remaining $900 Thousand will be used to complete its recent purchase of processing hardware. The third closing, expected to be $9.0 million, is to occur on or before October 31, 2020, subject to certain conditions.
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