Mr. Anthony Palumbo, Chief Executive
Officer of Payment Services Interactive Gateway Corp. announced it has signed
an engagement letter with Octagon Capital
Corporation in connection with a proposed “best efforts” private
placement. The Offering is to consist of a minimum of
$1,000,000 and a maximum of $1,500,000. The Offering will consist of Units,
each Unit consisting of $1,000 principal amount of 10% convertible debentures
and 3,500 common share purchase warrants.
The Offering of Units is scheduled to close on or about January 15, 2002,
subject to receipt of regulatory approval and completion of due diligence.
The Debentures shall be convertible at $0.10 per underlying common share
at any time from the date of issuance to the maturity date, January 15, 2004.
PSiGate will have a right to redeem the Debentures if at any time after the
first anniversary date of issuance the 30-day weighted average trading price
of PSiGate’s common shares is at least 150% of the conversion price ($0.15).
Each Warrant accompanying the Unit shall be exercisable into one common share
at a price of $0.10 per common share. The Warrants shall expire on January 15,
In connection with the Offering, Octagon shall be entitled to receive 8%
on the gross proceeds realized other than those proceeds generated by
subscriptions made by officers of PSiGate. Currently, the officers of PSiGate
have committed to a minimum of $400,000 of the Offering. In addition, Octagon
shall be granted compensation options equal to 8% of the common shares
underlying the Debentures.
PSiGate plans to use the proceeds from the Offering for working capital
purposes and for debt repayment.
Payment Services Interactive Gateway Corp. empowers businesses on the
Internet by providing secure, cost-effective and trusted e-commerce solutions.
PSiGate provides an easy and seamless interface to new or existing online
commerce enterprises, offering a reliable means of real – time payment
collection and financial transaction processing, as well as credit card batch
processing. Management services include automated shipping calculations, fraud
screening and financial account reporting. PSiGate also provides VISA,
MasterCard and American Express Internet Merchant Accounts (Merchant IDs) for
Canadian and USA – based businesses. For more information, please visit