Clip Money Inc. Secures a US$3 Million Loan from BDC

Executive Summary

• Clip Money Inc. secured a CAD $3 million non‑dilutive loan from Business Development Bank of Canada (BDC) with a floating interest rate of 6.8% + 1% plus an additional 7.45% per annum component.
• The loan matures on August 15, 2028 and will be used for working capital and growth initiatives.
• Security is provided by a first‑ranking lien over Clip Money’s assets and a 100 % guarantee from its U.S. subsidiary; no equity or convertible securities are issued.

Key Details

• Loan Amount: CAD $3 million (the “BDC Loan”).
• Interest Rate: BDC floating base rate (6.8 % as of Oct 24 2025) + 1 % per annum, calculated daily.
• Additional Interest: 7.45 % per annum (non‑compounding), calculated monthly on the total outstanding indebtedness.
• Maturity Date: August 15 2028; principal may be repaid as a single balloon payment together with accrued interest and additional interest.
• Security: First‑ranking security interest over all present and after‑acquired personal property of Clip Money and its subsidiary, subject to customary permitted liens.
• Guarantee: Clip Money (USA) Inc. provides a 100 % guarantee of the loan amounts.
• Use of Proceeds: Working capital and growth initiatives.
• Fees: Monthly management fee of $500; standby fee of 3 % per annum on undrawn portion beginning Oct 10 2026. No bonus securities, warrants, options, or finder’s fees are involved.
• No Finder Involved: The Company did not engage a finder for this financing.

Notable Quotes

• “Securing non‑dilutive growth capital from BDC is a major milestone for Clip and a powerful signal of confidence in our company and our trajectory.” – Joseph Arrage, CEO & Co‑Founder
• “Clip Money provides efficient and convenient deposit services to a diverse range of clients… It’s the type of ambitious company that BDC wants to invest in and work with to see them grow.” – Sean Crouse, Director, Growth and Transition Capital, BDC