BRAMPTON, ON, July 4, 2016 /CNW/ - DATA Group Ltd. (TSX: DGI) ("DATA" or the "Corporation") announced today that it has changed its name to "DATA Communications Management Corp." (the "Name Change") and consolidated its issued and outstanding common shares ("Common Shares) on the basis of one post-consolidation Common Share for each 100 pre-consolidation Common Shares (the "Share Consolidation") and that its Common Shares will commence trading under the new stock symbol of "DCM". The Name Change and Share Consolidation were each approved at the annual and special meeting of the Corporation's shareholders held on June 30, 2016.
The Name Change is an integral part of DATA's corporate re-branding announced in March of this year.
"Since we re-branded back in March of this year, we've had an overwhelmingly positive response to our new visual identity and value story from our customers and shareholders. This formal name change is the next logical step to align our legal company name to our new brand identity," said Jeff Gladwish, Vice President, Marketing & Corporate Development.
After giving effect to the Share Consolidation, the 1,197,504,525 Common Shares outstanding (which includes the Common Shares issued pursuant to the private placement described below) were consolidated into approximately 11,975,053 Common Shares outstanding. No fractional Common Shares were issued, and any fractional share entitlements resulting from the Share Consolidation were rounded up to the nearest whole number of Common Shares.
DATA believes the Share Consolidation will provide the Corporation with a share capital structure that will better attract investors and equity financing and enhance future growth opportunities.
The exercise price and number of Common Shares issuable, and other entitlements, under awards granted pursuant to the Corporation's long-term incentive plan have been proportionately adjusted to reflect the Share Consolidation.
Additionally, the conversion price of the Corporation's 6.0% convertible unsecured subordinated debentures has been proportionately adjusted to reflect the Share Consolidation.
A letter of transmittal has been mailed to registered holders of Common Shares providing instructions to surrender the certificates evidencing their Common Shares for replacement certificates representing the number of Common Shares to which they are entitled as a result of the Share Consolidation. Until surrendered, each certificate representing Common Shares prior to the Share Consolidation will be deemed for all purposes to represent the number of Common Shares to which the holder of that certificate is entitled as a result of the Share Consolidation.
New Stock Symbol and Post-Consolidation Trading
The Common Shares are expected to commence trading on the Toronto Stock Exchange on a post-consolidation basis at market open on July 7, 2016 under the new stock symbol "DCM" with a new CUSIP number 23761M102. The Debentures are expected to commence trading on the Toronto Stock Exchange at market open on July 7, 2016 under the new stock symbol "DCM.DB" with a new CUSIP number 23761MAA0.
Approval and Completion of Private Placement to KST Industries Inc.
The Corporation also announced that, following receipt of disinterested shareholder approval at the annual and special meeting of the Corporation's shareholders held on June 30, 2016, it has completed the previously announced private placement of 30,895,781 Common Shares to KST Industries Inc. ("KST") at a price of $0.014 per share as part of the $2.8 million private placement announced by the Corporation on May 27, 2016.
About DATA Communications Management Corp.
At DATA, we are experts at planning and driving business communications. We help marketers and agencies unify and execute communications campaigns across multiple channels, and we help operations teams streamline and automate document and communications management processes. Our core capabilities include direct marketing, print services, labels and asset tracking, event tickets and gift cards, logistics and fulfilment, content and workflow management, data management and analytics, and regulatory communications. We serve clients in key vertical markets such as financial services, healthcare, lottery and gaming, retail, not-for-profit, and energy. We are strategically located across Canada to support clients on a national basis, and serve the U.S. market through our facilities in Chicago, Illinois.
Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.
Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DATA, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements. When used in this press release, words such as "may", "would", "could", "will", "expect", "anticipate", "estimate", "believe", "intend", "plan", and other similar expressions are intended to identify forward-looking statements. These statements reflect DATA's current views regarding future events and operating performance, are based on information currently available to DATA, and speak only as of the date of this press release. These forward-looking statements involve a number of risks, uncertainties and assumptions and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such performance or results will be achieved. Many factors could cause the actual results, performance, objectives or achievements of DATA to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward-looking statements. The principal factors, assumptions and risks that DATA made or took into account in the preparation of these forward-looking statements include market acceptance of the change in the Corporation's legal name; the effect of the share consolidation; and the other factors described in DATA's management information circular dated June 1, 2016 for the annual and special meeting of DATA's shareholders held on June 30, 2016 and DATA's annual information form for the year ended December 31, 2015 dated March 30, 2016. Additional factors are discussed under the headings "Risk Factors" and "Risks and Uncertainties" in DATA's management's discussion and analysis and in DATA's other publicly available disclosure documents, as filed by DATA on SEDAR (www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Unless required by applicable securities law, DATA does not intend and does not assume any obligation to update these forward-looking statements.
SOURCE DATA Group Ltd.
For further information: Mr. James E. Lorimer, Chief Financial Officer, DATA Communications Management Corp., Tel: (905) 791-3151