Intermap Technologies Announces US$7.3 Million Debt Financing With Vertex One Asset Management

New financing retires $5.8 million existing debt facility and provides $1.5 million in working capital

DENVER, CO, Feb. 26, 2015 /CNW/ - Intermap Technologies Corporation (TSX:IMP), (ITMSF:BB), a leading provider of geospatial solutions on-demand created from its uniform, high-resolution 3D digital models of the earth's surface, today announced that it has entered into an agreement to complete a non-brokered US$7.3 million debt financing (the "Debt Financing") with Vertex One Asset Management ("Vertex") of Vancouver, BC.

"The financing provides the Company with the resources to retire an outstanding note payable that became due earlier this month, consolidate debt, and add the working capital needed for the execution of our business plan," said Todd Oseth, Intermap's President and CEO.  "Partnering with Vertex, a leading Canadian fund, provides Intermap with the financial backing required to complete the Company's transformation into a 3DBI geospatial software-driven company, as well as support the Company's continued pursuit of Spatial Data Infrastructure (SDI) opportunities around the world.  We are pleased that Vertex has recognized Intermap's strategic positioning in, and vision for, the evolving geospatial technology sector."    

The promissory notes granted under the Debt Financing will mature 12 months from the date of issuance.  Simple interest is payable at maturity at an annual rate of 25.0%.  As additional consideration for the Debt Financing, the Company entered into a royalty agreement with Vertex, pursuant to which the company agreed to pay Vertex a 17.5% royalty on its net revenues.  Under the terms of the financing, Vertex assumed the obligations of an outstanding $5.0 million note (plus accrued interest of $800,000), which was issued on February 6, 2014, and became due on February 6, 2015.  Vertex subsequently retired the February 2014 note obligation, and the 12,367,054 conversion shares associated with the note were cancelled.  The Debt Financing is subject to a prepayment right by the Company at 125% of the principal amount at anytime, subject to a 30 day notice period.

The Debt Financing is expected to be completed on or about February 27, 2015, and is subject to receipt of all necessary approvals and satisfaction of all other customary closing conditions.

The Company intends to use the net proceeds of the Debt Financing for general corporate purposes. 

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or applicable exemption from those registration requirements.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. 

About Vertex

Vertex is a Vancouver based asset management firm currently handling $2.1 billion in assets. Vertex looks for misvalued companies with a catalyst in the near future, while also paying attention to valuation relative to industry peers. It seeks to achieve superior long term performance by identifying companies that have low price-to-value metrics, have put themselves up for sale, or companies where a misvaluation has occurred within the capital structure of the company. The firm currently manages six funds offered to direct clients, advisors and institutions. The Vertex Fund, Vertex Managed Value Portfolio and Vertex Arbitrage Fund are memorandum based funds. The Vertex Enhanced Income Fund, Vertex Growth Fund, and Vertex Value Fund are prospectus-based, long-only funds.

About Intermap Technologies

Headquartered in Denver, Colorado - Intermap (www.intermap.com) is an industry leader in geospatial solutions on demand with its secure, cloud based Orion Platform™.  Through its powerful suite of 3DBI applications and proprietary development of contiguous databases that fuse volumes of geospatial data into a single source, the Orion Platform is able to provide location- based solutions for customers in diverse markets around the world.  For more information please visit www.intermap.com.

Intermap Reader Advisory

Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Although Intermap believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a variety of known and unknown risks and uncertainties. You can find a discussion of such risks and uncertainties in our Annual Information Form and other securities filings. While the Company makes these forward-looking statements in good faith, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary significantly from those expected. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to Intermap or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law. 

SOURCE Intermap Technologies Corporation

Intermap Technologies, Rich Mohr, Senior Vice President & Chief Financial Officer, [email protected], [phone]; Canada - Financial, Cory Pala, Investor Relations, e.vestor Communications Inc., [email protected], [phone]