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DATA Communications Management Corp., a leading provider of marketing and business communication solutions to companies across North America, announces It has closed the previously announced additional $7 million financing with Crown Capital Partner Funding, LP, an investment fund managed by Crown Capital Partners Inc.

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DCM has entered into a third amendment to its original credit agreement dated May 8, 2018 with Crown (the “Crown Facility”), whereby Crown has advanced a second non-revolving term loan (the “Tranche Two Loan”) in the principal amount of $7 million. To date, Crown has made total advances under the Crown Facility in the principal amount of $19 million. The Tranche Two Loan bears interest at the rate of 10% per annum, payable quarterly. The terms of the Tranche Two Loan are consistent with the provisions of the initial term loan advanced by Crown (the “Tranche One Loan”) under the Crown Facility. DCM may, subject to certain prepayment fees, prepay in full (but not in part) the entire outstanding balance of the Tranche Two Loan, and provided the Tranche Two Loan has been, or will concurrently be, prepaid in full, the Tranche One Loan, commencing May 8, 2020. The final maturity date for both advances under the Crown Facility remains May 8, 2023. The net proceeds of the Tranche Two Loan will be used by DCM to fund working capital expenses. As partial compensation for advancing the Tranche Two Loan and the promissory notes issued to certain related parties to DCM on July 31, 2019, respectively, DCM has issued warrants to: (i) Crown to purchase up to 550,000 common shares of DCM and (ii) the holders of those promissory notes to purchase up to a total of 78,571 common shares of DCM, in each case at an exercise price of $1.08 per share until May 8, 2023 (subject to customary anti-dilution adjustments).

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“This funding helps support our short-term working capital needs and our future growth,” said Gregory J. Cochrane, CEO. “Crown Capital is supportive of our business strategy and is a valued financial partner. This capital will provide additional flexibility for us as we continue our pivot to a leading marketing and business services provider. Year to date, we have closed approximately $20 million of new business, including business from new customers and new solutions serving our existing customers’ needs.”

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