Impact Development Group Bolsters Financing with Additional Warrants

Impact Development Group Inc. (TSXV: IMPT) has announced the issuance of 96,290 non-transferable common share purchase warrants to a lender, further strengthening its financing position. The warrants, exercisable at C$1.80 each for a period of three years, are a continuation of the Company's equity-based financing strategy.

The issuance of these warrants is part of an unsecured drawdown loan agreement signed on October 24, 2024, which provides Impact Development Group with up to USD$1,000,000 in financing. The loan is advanced in up to four tranches over a period of three months, with each tranche tied to a specific funding date and the issuance of Bonus Warrants. The lender is not a non-arm's-length party to the Company, as it is an existing securityholder of Impact Development Group.

The Company has agreed to issue Bonus Warrants to the lender on each funding date, with the number of warrants equal to the advance divided by the 10-day volume-weighted average price of the common shares. The exercise price of each Bonus Warrant will be equal to the applicable Current Market Price, provided that the Current Market Price must be equal to or higher than the closing price of the Common Shares on the Exchange on the trading date immediately prior to the issuance of the Bonus Warrants.

In connection with the first advance, the Company issued 192,206 Bonus Warrants to the lender at a Current Market Price of C$1.80. The Lender is not a non-arm's-length party (as defined in the policies of the Exchange) to the Company, as the Lender is an existing securityholder of the Company. The Loan will be used towards the working capital and general operations of Fusion Software LLC, a subsidiary of the Company.



The issuance of these warrants allows Impact Development Group to access much-needed working capital and general operations funding for its subsidiary, Fusion Software LLC. This financing strategy, which involves issuing equity-based instruments to secure capital, is a common approach for growing companies in the real estate development sector. By maintaining a strong balance sheet and preserving flexibility for long-term growth, Impact Development Group is positioning itself to capitalize on future opportunities in the affordable housing market.

While the issuance of additional warrants may lead to some dilution for existing shareholders, the Company's strategic use of equity financing demonstrates its commitment to responsible growth and financial management. As Impact Development Group continues to execute its growth strategy, investors should monitor the Company's progress and evaluate the potential impact of future financing activities on shareholder value.