Mobiquity Technologies Enters Agreement to Retire $6.5 Million Note due to Advangelists
Resolution of Multiple Obligations Clears Path for Nasdaq Uplisting Application
NEW YORK, September 24, 2019 (PR NEWSWIRE) — Mobiquity Technologies, Inc. (OTCQB: MOBQ), a leading provider in next generation advertising technology, announced a recapitalization of its common equity and additional financing, positioning the Company to accelerate its revenue growth. The complete details regarding these transactions have been filed in an 8-K dated September 19, 2019.
On September 13, 2019, the Company entered into an agreement to retire an outstanding $6.5 million note due from the Company to Advangelists, LLC. The note was related to the Company’s acquisition of Advangelists in December 2018. This acquisition has been the primary catalyst for Mobiquity’s transformative revenue growth throughout 2019, and Advangelists is expected to drive significant anticipated future revenue growth. The Company retired the note in exchange for $1.5 million in cash and shares of Mobiquity stock.
Mobiquity amended and extended a multi-year employment agreement with Mr. Katyal, the CEO and co-founder of Advangelists, who will remain in an active executive role with the Company. The Company also amended and extended its employment agreement with Mr. Lokesh Mehta, co-founder and CTO of Advangelists, who developed Advangelists’ technology together with Mr. Katyal. It is expected that these two executives will play a key role in future technology advancements and revenue generation.
The Company also entered into a transaction with GBT Technologies (“GTCH”) and its primary financing partner, Glen Eagle Acquisitions, LLC (“Glen Eagle”). The Company agreed to unwind a previously executed partnership with GTCH by delivering a total of 200,000 shares of GTCH common stock in exchange for the return of 25 million shares of Mobiquity common stock. In addition, the Company’s largest shareholder acquired a total 175 million shares from GTCH and Glen Eagle for cash and the forgiveness of a note.
Finally, the Company entered into a $2.3 million convertible note with its largest shareholder. The Company will use $1.5 million of this note to satisfy the cash component of the transaction with Advangelists. The remaining note proceeds will be used to enhance working capital and support organic growth. The Company believes the terms of this note are advantageous to the prevailing alternative sources of capital available in the market today.
“These three transactions have transformed our capital structure and vastly improved our financial strength,” said Dean Julia, CEO of Mobiquity. “In a single day, we cleared our single largest liability; significantly improved our liquidity; and secured our most valuable asset and growth engine by completing our obligations related to the acquisition of Advangelists.”
“We also resolved a complicated financial relationship with two of our legacy institutional shareholders,” continued Mr. Julia. “The prior intercompany ownership nature of the relationship was identified as a potential complication to my desire to file a listing application with Nasdaq and the agreement substantially clears our path towards Nasdaq.”
“We are very fortunate that our largest single shareholder stepped up on our behalf and significantly increased his stake in Mobiquity, which demonstrated tremendous faith in our team and outlook for growth in the near term, and allowed us to complete these important transactions and at the same time improve our capital reserves. Based on our extensive preparation with expert consultants on the Nasdaq uplisting process, and our dialogue with multiple reputable investment banks, having entered into these transactions, we intend to immediately begin preparation of our Nasdaq application,” concluded Mr. Julia.
About Mobiquity Technologies
Mobiquity Technologies, Inc. (OTCQB: MOBQ), is a mobile first, next generation, platform-as-a-Service (PaaS) company for data and advertising. The company maintains the largest location database available to advertisers and marketers through their data services division. Our corporate website is (www.mobiquitytechnologies.com). Through Mobiquity Technologies’ Advangelists subsidiary (www.advangelists.com), the Company also provides programmatic advertising technologies and precise mobile data insights on consumer behavior.
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