- Minimum offering size of $1.0M fully committed -
OTTAWA, Oct. 22, 2013 /CNW/ - Magor Corporation ("Magor" or the "Company") (TSX-V: MCC), a global leader in visual
collaboration solutions, today announced that it intends to complete a
brokered private placement of subordinated secured debentures in the
aggregate minimum gross proceeds of $1,000,000 and maximum gross
proceeds of up to $2,000,000 (the "Offering") in units (the "Units").
Each Unit will be issued for $1,000 per Unit and shall consist of a
$1,000 par value senior secured debenture (the "Debentures") and 1,000
common share purchase warrants (each a "Warrant"). The Debentures shall
mature four (4) years from the date of issuance, unless redeemed at
102.0%, at the option of the Company, and the Warrants are exercisable
at a price of $0.40 for a period of four (4) years. The Debentures
shall bear interest at an annual rate of 12% of par value, payable
every six (6) months in arrears in cash. On maturity, the Company
intends to settle the principal amount of the Debentures for cash or
subject to TSXV acceptance, for common shares, at the option of the
holder, under Policy 4.3 of the TSXV Corporate Finance Manual. The
syndicate, is led by Jacob Securities Inc., and includes Macquarie
Private Wealth Inc. (the "Syndicate"). The Syndicate is offering the
Units on a "best efforts" basis and is pleased to confirm that current
commitments are $1,000,000.
Magor intends to use the gross proceeds from the Offering to accelerate
the growth opportunity associated with the Company's Aerus cloud-based
video collaboration solutions, which will be fully launched this fall.
"This funding will help to accelerate our investments into the sales and
support of our exciting Aerus cloud services offering," said Mike
Pascoe, President and CEO of Magor Corporation. "This debt vehicle
complements our recently closed equity placement to provide a balanced
approach to rive this funding."
The Offering remains subject to the approval of the TSX Venture Exchange
and the satisfaction of other customary closing conditions. All
securities issued pursuant to the Offering (and any underlying
securities) will be subject to a statutory four (4) month hold period,
commencing as at the closing date of the Offering.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States, or for
an account or benefit of U.S. persons (as such term is defined in
Regulation S under the United States Securities Act of 1933, as
About Magor Corporation:
Magor enables people to engage in high-quality visual conversations
while simultaneously sharing, viewing and editing relevant
collaborative material on desktops, laptops, tablets, smartphone
applications, whiteboards and other devices. Magor fits any workflow so
that users have the freedom to work together naturally anytime,
regardless of location, network or device. To find out more about Magor
Corporation (TSX-V: MCC), visit our website at http://www.magorcorp.com.
Disclaimer in regards to Forward-looking Statements
Certain statements included herein constitute "forward-looking
statements" within the meaning of applicable securities laws.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by
management at this time, are inherently subject to significant
business, economic and competitive uncertainties and contingencies.
Investors are cautioned not to put undue reliance on forward-looking
statements. Except as required by law, Magor does not intend, and
undertakes no obligation, to update any forward-looking statements to
reflect, in particular, new information or future events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Magor Corporation
For further information:
President and CEO
Virtus Advisory Group Inc.