Oh, what a feeling of freedom it must be to have paid off your company’s debts. Your company can then move faster to complete other projects and garner more income.
Such is the feeling of euphoria Los Angeles-based Sanwire Corporation (PINK:SNWR) must be experiencing this week.
Incidentally, the technology sector in the United States moved 0.5% into the green by midday Wednesday, while the comparable sector in Canada acquired 0.2%. Alas, there were no small-cap companies in Canada within the parameters of this column.
As for Sanwire, it’s a diversified company with a focus on technologies for the entertainment industry, which took to the bullhorn Wednesday to announce the retirement of $415,000 in long-term debt in the form of a convertible 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
According to CEO Chris Whitcomb, "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.
"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."
SNWR shares moved skyward 1.8 cents, or 120%, noon hour EDT Wednesday to 3.3 cents, on 7.2 million shares.
