Just days after announcing a revenue share and wholesale agreement with Apelby Communications, Swarmio Media (CSE: SWRM) has evidently deepened the relationship rather significantly. The company has revealed this morning that it has received a strategic investment from Apelby, the terms of which appear rather favourable to Swarmio.
The strategic investment amounts to gross proceeds of US$1.0 million, which will come in the form of an unsecured convertible debenture. The debt bears interest at a rate of 10% per annum, and has a term of one year. An initial US$500,000 has been advanced under the note, with the second tranche set to occur in early 2023.
The note is convertible should Swarmio conduct a financing for gross proceeds of US$5.0 million during the term, at which point the debt will convert at the lower of a 20% discount to the price of the financing, or a price reflecting a US$30.0 million market cap for Swarmio. This cap is notable, given that as of yesterday’s close Swarmio had a market capitalization of $11.05 million, demonstrating the value Apelby sees in Swarmio’s product offerings.
Proceeds from the investment are to be used to fund the launch of the firms Ember gaming platform into new markets in Europe, Africa, and Latin America, as well as for general working capital purposes.
“We view this as not just an investment, but as the beginning of a mutually beneficial partnership, which will allow Apelby and our telco partners to tap into the massive $200 billion global gaming market. More than a third of the global population is already online gaming but there is still a lot of growth to come as smart phones and internet connectivity continue to become more available,” commented Apelby CEO Michal Kutzendorfer.
Swarmio Media last traded at $0.10 on the CSE.
FULL DISCLOSURE: Swarmio Media is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Swarmio Media on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
