Gunpowder Capital Corp. (CSE: GPC; FSE: YS6N) has acquired a 12.5% equity interest in JIT Financial Inc. Financial terms were not disclosed.
JIT Financial was formed to enter into the Automated Teller Machine (ATM) Business starting with the acquisition of 550 ATMs in the Greater Toronto Area. JIT plans on acquiring other ATM companies in order to expand its footprint.
Gunpowder Capital has agreed to loan JIT the funds required to purchase the ATM machines and will also provide the cash required to fill the ATM machines.
In respect to the acquisition loan, Gunpowder will earn interest at a rate of ten percent per annum and will receive a royalty payment of Ten Cents per ATM transaction in perpetuity. With respect to the vaulting funds being provided, Gunpowder will earn a fee of Thirty Cents per ATM transaction.
Paul Haber, CFO of Gunpowder Capital, will join JIT board as Chairman to help manage JIT’s growth and Gunpowder’s investment.
Gunpowder Capital is a merchant bank and advisory services firm, offering a variety of financing options including mezzanine debt, bridge loans, convertible debentures and straight loans as well as equity financing.
Formerly known as Silver Shield Resources Corp, Gunpowder Capital Corp. effected change of business in May 2016.
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