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- Financing includes $31 million in convertible notes
and $17.5 million in senior debt
facility from Silicon Valley Bank (SVB)
- Capital from new U.S. and Canadian institutional investors,
Aimia Inc. (TSX: AIM) and company insiders position Kognitiv to
drive continued growth of its proprietary collaborative-commerce
platform
TORONTO, Feb. 2, 2022 /CNW/ - Kognitiv
Corporation ("Kognitiv" or the "Company"), a global leader in
the rapidly expanding market for collaborative commerce, today
announced it has secured $48.5 million in financing transactions to
expand its innovative collaborative-commerce ("C-commerce")
platform and fund working capital. All figures are denominated in
Canadian dollars.
The financings consist of a $17.5
million senior debt facility from Silicon Valley Bank (SVB),
the bank of the world's most innovative companies and their
investors, and $31 million of
convertible notes. Investors in the convertible notes included
$15 million from a new U.S.
institutional investor, $10 million
from Aimia Inc. (TSX: AIM), and $1.25
million from company insiders, including members of the
board of directors and senior management. The convertible notes
have the option to convert to equity at a discount to the price at
which equity is offered in Kognitiv's next qualified financing
round.
"We attracted a great mix of investors in these financings,
including a new U.S. institutional investor, as well as those that
know us extremely well like Aimia, our board and senior
management," said Peter Schwartz,
Founder and Executive Chairman of Kognitiv. "Together, these
investors share our understanding of the potential of C-commerce.
It's a transformational tool enabling businesses to collaborate
more deeply with their partners, reach new audiences, enhance their
data, and amplify the value they bring to their consumers."
"This new capital will help support our growth initiatives,
including R&D and accelerating the adoption of our platform.
These funds will also support our commercial efforts to convert our
significant pipeline into recurring revenue, subscription clients,"
said Shawn Pearson, President and
CEO of Kognitiv. "Businesses are increasingly looking to
marketplaces and ecosystem models to become more efficient, drive
growth and build loyalty. What many are learning, is that making
this transition is extremely challenging. With our platform,
businesses are empowered with the technology and tools to
effortlessly adopt these models, and in turn, create significant
value for their consumers that sets them apart from
competition."
The Company was supported on the transactions by TD Securities
Inc. and Canaccord Genuity Corp. who acted as financial advisors
(the "financial advisors") and Blake, Cassels & Graydon LLP as
legal counsel. Stikeman Elliott LLP acted as legal counsel to the
financial advisors.
About Kognitiv
Kognitiv is a B2B technology growth company redefining
loyalty and empowering businesses to grow, adapt, and
transform with Collaborative Commerce. Kognitiv's platform and
services enable businesses to build powerful marketplaces and
experiences through multi-enterprise collaboration with partners,
suppliers, and distributors, while unearthing new value for
consumers, enhancing access to data – including zero party data –
and providing greater control of the consumer journey.
Headquartered in Canada, Kognitiv
is processing more than $1 billion
in transactions annually and has more than 190 million
consumer profiles managed by a global base of blue-chip
clients. Find out more at http://www.kognitiv.com/.
Forward Looking Statements
This news release contains "forward-looking information" within
the meaning of applicable securities legislation, which reflects
the Company's current expectations regarding future events,
including statements relating to the potential of C-commerce; the
use of new capital to accelerate the expansion and adoption of the
Company's C-commerce platform; the funding of the Company's
R&D, sales and marketing to convert the Company's opportunity
pipeline into recurring revenue, subscription clients; and the
Company's products and services enabling enable clients to offer
consumers more value. Forward-looking information is based on a
number of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond the Company's control. Such
assumptions, risks and uncertainties include, but are not limited
to, business and industry trends, including the development of
collaborative-commerce; Kognitiv's ability to achieve the expected
benefits of its collaborative commerce platform; advance of the
decentralized web and the era of zero-party data; the success of
current and future product development initiatives; the expected
impact of privacy regulation on demand for Kognitiv's products and
services; Kognitiv's ability to maintain positive relationships
with its client base and strategic partners; and the expected
impact of Kognitiv's collaborative commerce platform on its clients
and their partners and customers. Such risks, uncertainties,
assumptions and other factors may cause the actual results,
performance, achievements or developments to differ materially from
the anticipated results, performance, achievements or developments
expressed or implied by the forward-looking information in this
press release.
Unless otherwise noted or the context otherwise indicates, the
forward-looking information contained in this news release is
provided as of the date of this news release, and the Company does
not undertake any obligation to update such forward-looking
information, whether as a result of new information, future events
or otherwise, except as expressly required under applicable
securities laws.
SOURCE Kognitiv Corporation