Minnesota-based DigitalTown Inc. is the leading developer of a nationwide social media network of more than 27,000 local online communities for high school students, alumni, boosters and local citizens.
The company announced today that it has signed a $10 million drawdown equity financing agreement with Boston-based institutional investor, Auctus Private Equity Fund LLC. DigitalTown is under no obligation to use the funding facility, but plans to use any proceeds for working capital to fund operations of the company. Expansion of its nationwide social media network is another possible use for the funds.
Pursuant to the purchase agreement, DigitalTown has the right at its discretion to sell to Auctus up to $10 million of its common stock over a 36-month period. The purchase price of the shares will be based on 94% of the volume weighted purchase pricing during the pricing period as outlined in the agreement.
There are no financial or business covenants, restrictions of future funding, rights of first refusal, participation rights, or liquidated damages in the purchase agreement. The agreement may be terminated by DigitalTown at any time, at its sole discretion, without any cost or penalty.
For further information on DigitalTown, please visit the company’s website at www.digitaltown.com