Alliance Digital Fund (ADF) has secured a capital commitment of up to EUR40 million from GEM Global Yield (GEM), a Luxembourg based private alternative investment group, over a five-year term following a public listing of ADF common stock. ADF will use the funds to complete the development of the ZONTO software product and related products, and marketing promotion.
The initial EUR40 Million will be in the form of a capital commitment that allows ADF to draw down funds during the five-year term by issuing shares of ADF’s common stock to GEM (or such persons as it may direct) and subject to share lending arrangement(s) being in place.
ADF will control the timing and maximum amount of drawdown under this facility and has no minimum drawdown obligation. Concurrent with a public listing of ADF shares, the company will issue warrants to GEM to purchase up to ten per cent (10 per cent) of the outstanding common stock of the company on a fully diluted basis. The warrants will have an exercise price per share equal to the Closing Bid Price of the Shares on the first day of trading upon the completion of the Going Public Transaction.