- Company to accelerate the development and marketing of its mobile
TORONTO, May 6, 2013 /CNW/ - theScore, Inc. (TSX Venture: SCR)
("theScore" or the "Company") today confirmed the closing of its $16
million private placement financing, allowing the company to accelerate
the development and marketing of its mobile sports apps.
theScore's mobile sports platforms have achieved significant growth
since September 2009, growing from 600,000 monthly users to more than
4.2 million in January 2013. Available across all major mobile
platforms, its flagship applications offer real-time sports news,
scores, fantasy information and alerts, alongside compelling and
John Levy, Chairman and CEO of theScore, Inc. said: "This financing
allows us to ramp-up the development of some exciting new features for
our mobile sports platforms, providing sports fans with an even more
immersive experience while accelerating user growth across the United
The financing is a non-brokered private placement of 100,000,000 Class A
Subordinate Voting Shares (Class A Shares) at a price of $0.16, raising
gross proceeds of $16,000,000. Relay Ventures, a venture capital fund
based in Toronto and Silicon Valley and focused exclusively on the
mobile sector, lead the private placement purchasing 35,937,500 Class A
Shares, representing approximately 18.4% of the outstanding Class A
Shares. Existing shareholders, including Levfam Holdings Ltd. and
Rogers Media Inc., also participated in the financing.
In conjunction with this investment, a nomination rights agreement and
pre-emptive rights agreement have been executed which provides Relay
Ventures the right to nominate one director (representing the holders
of Class A Shares) to the Company's board of directors and the right to
maintain a pro-rata share position in future equity offerings. In
accordance with the nomination rights agreement, Relay Ventures'
Co-Founder and Managing Partner John Albright was appointed to the
Company's board of directors. Mr. Albright is replacing Ken Read, whose
resignation was accepted by the Board.
Mr. Levy added: "We're delighted to welcome John to theScore's Board of
Directors. His experience in the mobile sector will be invaluable. I
also want to thank Ken for more than a decade of dedicated service and
wish him the very best for the future."
There are no bonuses, finder's fees, commissions or other compensation
to be paid in connection with the private placement. The Class A Shares
issued upon completion of the private placement will be subject to a
hold period under applicable securities laws, expiring September 4,
Canaccord Genuity Corp. provided theScore with strategic financial
advice in connection with the private placement.
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Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
No securities regulatory authority has either approved or disapproved
the contents of this news release. The securities being offered have
not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or any
state securities laws, and may not be offered or sold in the United
States, or to, or for the account or benefit of, a "U.S. person" (as
defined in Regulation S of the U.S. Securities Act) unless pursuant to
an exemption therefrom. This press release is for information purposes
only and does not constitute an offer to sell or a solicitation of an
offer to buy any securities of the Company in any jurisdiction.
About theScore Inc.
theScore's mission is to provide a full digital service to sports fans,
delivering a personalized user experience across all major mobile
platforms through our mobile apps and website. Users are provided with
a comprehensive, customizable service that dispenses real-time sports
news, scores, fantasy information and alerts, alongside compelling,
relevant content that allows for seamless social sharing by users.
theScore also enables advertisers to engage with users across
theScore's mobile and web platforms and offers them a combination of
reach, relevance, and customizable advertising and sponsorship products
Forward-looking (safe harbour) statement
Statements made in this news release that relate to future plans, events
or performances are forward-looking statements. Any statement
containing words such as "may", "would", "could", "will", "believes",
"plans", "anticipates", "estimates", "expects" or "intends" and other
similar statements which are not historical facts contained in this
release are forward-looking, and these statements involve risks and
uncertainties and are based on current expectations. Such statements
reflect theScore's current views with respect to future events and are
subject to certain risks, uncertainties and assumptions. Many factors
could cause the Company's actual results, performance or achievements
to be materially different from any future results, performance or
achievements that may be expressed or implied by such forward looking
statements, including among other things, those which are discussed
under the heading "Risk Factors" in the Company's Listing Application
as filed with the TSX Venture Exchange and available on SEDAR at
www.sedar.com and elsewhere in documents that theScore files from time
to time with securities regulatory authorities. Should one or more of
these risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual
results could differ materially from the expectations expressed in
these forward-looking statements. The Company does not intend, and does
not assume any obligation, to update these forward-looking statements
except as required by applicable law or regulatory requirements.
SOURCE: theScore, Inc.
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