OTTAWA, Oct. 11, 2013 /CNW/ - Magor Corporation ("Magor" or the "Company") (TSXV: MCC), a global leader in visual
collaboration solutions, today announced that it has closed its
previously announced (see September 12th and September 26th News Releases) brokered private placement for aggregate gross proceeds
of $1,452,325 ("the "Offering"), subject to receipt of the TSX Venture
Exchange's final acceptance. In connection with the Offering, the
Company issued a total of 5,809,300 units (the "Units") at a price of
$0.25 per Unit. Each Unit consisted of one common share and one-half
common share purchase warrant. Each whole share purchase warrant
entitles the holder to purchase one additional common share at a price
of $0.40 per share, for a period of 3 years following the closing date
of the Offering. In accordance with applicable securities laws, the
securities issued in connection with the Offering are subject to a
minimum four month hold period, expiring on February 12, 2014. The
brokered private placement was led by Jacob Securities Inc. and
included as part of the syndicate, Macquarie Private Wealth Inc. (the
"Syndicate"), and resulted in the issuance of 302,204 broker warrants
to the syndicate. Total cash compensation payable to the Syndicate was
$94,401.13, a portion of this compensation was payable through the
issuance of an additional 65,000 Units. In conjunction with the
financing, a number of existing investors swapped their freely trading
shares for the newly issued shares, which are subject to a statutory
four month hold.
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.
"With this equity financing behind us, we are now in a stronger position
to expand our Aerus cloud-based visual collaboration services through
major global carriers and solutions integrators," said Mike Pascoe, the
President and CEO of Magor Corporation. "We have been successful at
securing requests for service trials with more than 20 carriers and
solutions integrators around the globe, and this list continues to
grow. We are also excited that the Magor story attracted a number of
very reputable Canadian institutional investors to participate in this
financing, and we look forward to working closely with them."
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
Sutton Compliance Communications
416-502-8607 ext. 240