Snipp to raise $1.1 mln in non-brokered financing

Mobile marketing firm Snipp Interactive (CVE:SPN) Tuesday has reported a non-brokered financing worth $1.1 million.

Each unit will consist of one unsecured convertible debenture with a par value of $1,000 and 5,000 warrants. The minimum subscription amount is $100,000.

The warrants are exercisable into common shares priced at 20 cents each. It also said the warrants expiry can be expedited if the trading price is greater than 50 cents for 20 consecutive trading days.

All securities issued are subject to a four month hold period. The debentures mature five years from closing, and bear an annual interest rate of 15 per cent.

Snipp will also pay a cash finders’ fee amounting to 10 per cent of the gross proceeds.
Profits from the offering will go toward general working capital purposes, including asset acquisition investigations. Closing of the offering remains subject to stock exchange approval.

Separately, the mobile marketing company also announced last Friday its chairman and founder Atul Sabharwal will replace Erik Hallstrom as chief executive. 

Hallstrom, who will continue with Snipp in an advisory role, stepped down to pursue another opportunity. Meanwhile, director Ritesh Bhavnani will take over as chairman of the board.

Shares, in late morning trade Tuesday, fell 14.29 per cent falling to 18 cents each on the TSX Venture Exchange.