TORONTO, ONTARIO--(Marketwired - June 14, 2013) - AirIQ Inc. (the "Company" or "AirIQ") (TSX VENTURE:IQ), a supplier of wireless location-based services, today announced the closing of the previously announced issuance of 3,300,000 common shares at a price of $0.05 per share to settle outstanding debts in the aggregate amount of $165,000.
A total of 3,300,000 shares were issued; 2,000,000 to Mosaic Capital Partners LP ("Mosaic"), and 1,300,000 to 2204671 Ontario Ltd. ("2204671). The Company elected to satisfy the indebtedness with shares in order to preserve its cash for operations. Following this repayment, the promissory notes issued in November 2012 to each of Mosaic and 2204671 have been repaid in full.
Mosaic is a shareholder of the Company and Vernon Lobo, a director and Chairman of AirIQ, is a managing director of Mosaic. 2204671 is a personal holding company of Donald Gibbs, a director, President and Chief Executive Officer of the Company.
Pursuant to applicable Canadian securities laws, the securities issued in connection with the shares for debt are subject to a four-month hold period from the date of issuance, expiring on October 15, 2013. The transaction was approved by the TSX Venture Exchange.
The shares for debt transaction constitutes a related party transaction under Canadian Multilateral Instrument 61-101 ("MI 61-101") by virtue of the participation in such transaction of the directors of the Company referenced above, but the transaction is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101.
Following this transaction, AirIQ now has a total of 21,358,947 common shares issued and outstanding.
AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's office is located in Pickering, Ontario, Canada. The Company offers a suite of asset management services that generate recurring revenues from each device deployed. AirIQ delivers services to two primary markets: Commercial Fleets and dealers that service Consumer segments. AirIQ provides vehicle owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.com.
This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.