Trakopolis IoT Corp. announced that it has entered into an agreement with ESW Holdings, Inc. with respect to a USD $3.0 million secured credit facility. The credit facility consists of a 12-month term loan bearing interest at an annual rate of prime (US) plus 4.5%.  In accordance with the terms of the Term Loan, the Company is not required to make any interest or principal payments until the maturity date of the Term Loan.

The Company has used the proceeds to pay out the Company's existing indebtedness to Silicon Valley Bank and to fund certain Lender expenses in accordance with the terms of the Term Loan, with the remaining funds to be made available for general working capital purposes.

As consideration for providing the Term Loan, the Lender will receive upon closing of the Term Loan, 1,307,620  bonus warrants of Trakopolis under the TSXV Policy 5.1 – Loans, Loan Bonuses, Finder’s Fees and Commissions. Each Bonus Warrant will be exercisable into one common share of Trakopolis at an exercise price of CDN$0.34 per Bonus Share, being the TSXV closing price the day before this announcement. The Bonus Warrants will expire on the date which is five years from the date of the Term Loan (the “Expiry Time”) and the Bonus Warrants will be subject to an initial four month plus one day hold period from the date of issuance of the Bonus Warrants. In the event of an Acquisition (as defined in the Bonus Warrants) the Company has agreed to acquire all of the Bonus Warrants from the Lender at a price to be determined based on the terms of the Acquisition.  The Bonus Warrants are subject to TSXV and regulatory approval.

“We welcome the financial backing of ESW as we continue to grow our customer and subscriber base,” said Trakopolis CFO, Richard Clarke.