Kognitiv Announces $48.5 Million in Financing

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• Financing includes $31 million in convertible notes and $17.5 million in senior debt facility from Silicon Valley Bank (SVB)
• Capital from new U.S. and Canadian institutional investors, Aimia Inc. (TSX: AIM) and company insiders position Kognitiv to drive continued growth of its proprietary collaborative-commerce platform

TORONTO, Feb. 2, 2022 /CNW/ - Kognitiv Corporation ("Kognitiv" or the "Company"), a global leader in the rapidly expanding market for collaborative commerce, today announced it has secured $48.5 million in financing transactions to expand its innovative collaborative-commerce ("C-commerce") platform and fund working capital. All figures are denominated in Canadian dollars.

The financings consist of a $17.5 million senior debt facility from Silicon Valley Bank (SVB), the bank of the world's most innovative companies and their investors, and $31 million of convertible notes. Investors in the convertible notes included $15 million from a new U.S. institutional investor, $10 million from Aimia Inc. (TSX: AIM), and $1.25 million from company insiders, including members of the board of directors and senior management. The convertible notes have the option to convert to equity at a discount to the price at which equity is offered in Kognitiv's next qualified financing round.

"We attracted a great mix of investors in these financings, including a new U.S. institutional investor, as well as those that know us extremely well like Aimia, our board and senior management," said Peter Schwartz, Founder and Executive Chairman of Kognitiv. "Together, these investors share our understanding of the potential of C-commerce. It's a transformational tool enabling businesses to collaborate more deeply with their partners, reach new audiences, enhance their data, and amplify the value they bring to their consumers."

"This new capital will help support our growth initiatives, including R&D and accelerating the adoption of our platform. These funds will also support our commercial efforts to convert our significant pipeline into recurring revenue, subscription clients," said Shawn Pearson, President and CEO of Kognitiv. "Businesses are increasingly looking to marketplaces and ecosystem models to become more efficient, drive growth and build loyalty. What many are learning, is that making this transition is extremely challenging. With our platform, businesses are empowered with the technology and tools to effortlessly adopt these models, and in turn, create significant value for their consumers that sets them apart from competition."

The Company was supported on the transactions by TD Securities Inc. and Canaccord Genuity Corp. who acted as financial advisors (the "financial advisors") and Blake, Cassels & Graydon LLP as legal counsel. Stikeman Elliott LLP acted as legal counsel to the financial advisors.

About Kognitiv

Kognitiv is a B2B technology growth company redefining loyalty and empowering businesses to grow, adapt, and transform with Collaborative Commerce. Kognitiv's platform and services enable businesses to build powerful marketplaces and experiences through multi-enterprise collaboration with partners, suppliers, and distributors, while unearthing new value for consumers, enhancing access to data – including zero party data – and providing greater control of the consumer journey. Headquartered in Canada, Kognitiv is processing more than $1 billion in transactions annually and has more than 190 million consumer profiles managed by a global base of blue-chip clients. Find out more at http://www.kognitiv.com/.

Forward Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements relating to the potential of C-commerce; the use of new capital to accelerate the expansion and adoption of the Company's C-commerce platform; the funding of the Company's R&D, sales and marketing to convert the Company's opportunity pipeline into recurring revenue, subscription clients; and the Company's products and services enabling enable clients to offer consumers more value. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such assumptions, risks and uncertainties include, but are not limited to, business and industry trends, including the development of collaborative-commerce; Kognitiv's ability to achieve the expected benefits of its collaborative commerce platform; advance of the decentralized web and the era of zero-party data; the success of current and future product development initiatives; the expected impact of privacy regulation on demand for Kognitiv's products and services; Kognitiv's ability to maintain positive relationships with its client base and strategic partners; and the expected impact of Kognitiv's collaborative commerce platform on its clients and their partners and customers. Such risks, uncertainties, assumptions and other factors may cause the actual results, performance, achievements or developments to differ materially from the anticipated results, performance, achievements or developments expressed or implied by the forward-looking information in this press release.

Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release, and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.

SOURCE Kognitiv Corporation

Hilton Barbour, [email protected]