Clip Money Inc. announced that it has entered into a binding offer letter with the Business Development Bank of Canada for a loan in the amount of CAD 500,000 in the form of non-revolving subordinated secured debt. The Company intends to use the proceeds from the BDC Loan for general working capital purposes. Clip?s mission to transform how businesses conduct financial transactions aligns with a cornerstone of BDC?s strategy: increasing support for entrepreneurs.

By reimagining the speed, location, and logistics of business deposits and other services, Clip Money is bringing cost-effective and convenient new solutions for businesses owners. The BDC Loan will bear interest at a floating rate equal to the BDC floating base rate plus a margin of 1.00%. The current BDC base rate as of the date hereof is 9.30% per annum.

All obligations of the Company under the BDC Loan and the Offer Letter will be secured by a third-lien security interest that is subordinated to prior security interests granted to certain existing lenders of the Company. The BDC Security will cover all present and after-acquired personal property, except consumer goods of the Company. The principal amount of the BDC Loan is repayable by the Company in full on November 15, 2026.

Interest on the BDC Loan is payable monthly on the 15th day of each month. In connection with the advancement of the BDC Loan, the Company will pay BDC a one-time fee of CAD 47,800, as well as an annual management fee of CAD 350.