Ackroo secures growth capital from Southern Ontario Fund for Investment and Innovation (SOFII)
OTTAWA, March 04, 2019 (GLOBE NEWSWIRE) — Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) (the “Company”), a gift card, and loyalty marketing technology and services provider is pleased to announce it has secured $500,000 via a loan with Western Ontario Community Futures Development Corporation Association (WOCFDCA) through the Southern Ontario Fund for Investment in Innovation (SOFII). Under the terms of the loan Ackroo received the full $500,000 less legal costs on closing. The loan will bear an 8% interest rate over a 60 month term with interest only payments owed during the first 6 months and then 54 equal payments of interest and principal payments. The Company will use these proceeds to accelerate several marketing and product related initiatives.
“Gaining access to additional non-dilutive growth capital via a favorable lender like SOFII is an exciting win for the Company and our shareholders,” commented Steve Levely, Chief Executive Officer of Ackroo. “As we continue our next phases of growth leveraging debt is an important priority for the Company. In the past these facilities were not available to us without paying very high interest rates and closing costs while also providing warrant coverage. With the Company not only earnings positive but now also cash flow positive we are in a great position to service debt from lenders like SOFII which further amplifies the exciting inflection point the Company has reached. These funds and others we are pursuing will help us further accelerate our organic and inorganic growth plans and has us very poised for some exciting growth ahead. ”
“Ackroo has a powerful finance & marketing solution that helps business attract, engage and grow their customers while increasing revenues.” said David Penton, Director of the Southern Ontario Fund for Investment in Innovation (SOFII). “We are very excited to be a part of their success story.”
The Southern Ontario Fund for Investment in Innovation (SOFII) loan program supports high-growth, innovative small and medium-sized Enterprises (SMEs) in rural and urban communities by offering loans of $150,000 to $500,000 to support all aspects of growth challenges facing them.
SOFII loan fund acts as a catalyst for job creation, increased investment in and support for innovation and is one element in the emerging climate of support for high growth companies in Southern Ontario. Launched by the Government of Canada in July 2012, SOFII is supported through FedDev Ontario and is delivered by the Western Ontario Community Futures Development Corporation Association (WOCFDCA) and Community Futures Ontario East. SOFII is a $40 million, self-sustaining fund available to eligible organizations across Southern Ontario. For more information about SOFII, please visit www.SOFII.ca.
Ackroo provides merchants of all sizes a robust, cloud based multi-currency marketing platform to help attract, engage and grow their customers while increasing their revenues and margins. Through a SaaS based business model Ackroo provides an in-store and online automated solution to help merchants process gift card, loyalty and promotional transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their gift card and loyalty accounts. Ackroo also provides important marketing services to assist their merchants with utilizing Ackroo’s technology solution. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
For information, please contact:
Chief Executive Officer | Ackroo
Tel: 613-599-2396 x730
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Forward Looking Statements This release contains forecasts and forward-looking statements that are not guarantees of future performance and activities and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, but are not limited to: the company’s ability to raise enough capital to support the company’s go forward plans; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the company operates; projected capital expenditures and liquidity; changes in the company’s strategy; government regulations and approvals; changes in customers’ budgeting priorities; plus other factors that may arise. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.