LOS ANGELES, CA / August 19, 2020 / Sanwire Corporation is pleased to announce the retirement of $415,000 in long-term debt in the form of a convertible note (the “Note”) issued in March 2018.
The Company reached an agreement with the Note holder to retire $415,000, which includes a principal amount of $310,000 and unpaid accrued interest of $105,000 at 12% annual interest rate. The Note holder has agreed to exchange the debt amount into Series C Preferred Stock (the “Preferred Stock”). This action is a follow up to the Company’s press release dated June 29, 2020 where the Company announced the creation of Series A, B, and C preferred stock to minimize dilution to its shareholders and enhance the Company’s balance sheet. The details of the debt retirement transaction will be reflected in the Company’s third quarter filings.
“Following the removal of this debt obligation, the balance sheet will be in a better position for future investments and potential merger and acquisition transactions,” stated Mr. Chris Whitcomb, CEO of Sanwire. “This will lead the way to enhanced service offerings and a broader distribution network which already includes iTunes, Spotify, Apple Music, Amazon Music, and many more.”
Intercept Music, Inc. (“Intercept”), wholly owned subsidiary of Sanwire, has progressed rapidly from development stage to product commercialization to revenue generation in a short timeframe. Intercept is embarking on a rapid growth plan that includes revenue expansion from existing markets, accelerated customer acquisition, new industry partnerships, and penetration of new markets. To support Intercept’s business plan, Sanwire is working on a multi-dimensional plan to attract seasoned investors and enhance Sanwire’s balance sheet while minimizing shareholder dilution.
“We are very pleased to further unencumber the Company via this beneficial debt restructuring which represented over 34% of our overall long-term debt,” said Whitcomb, “this shows confidence in our efforts and the long-term commitment our investors have made to Sanwire. We will continue delivering on our promise to find ways to strengthen our balance sheet and grow our business and market share.”
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