OTTAWA, Feb. 6, 2014 /CNW/ - Magor Corporation ("Magor" or the "Company") (TSX-V: MCC), a global leader in visual
collaboration solutions, is pleased to announce that it has closed the
second tranche of its brokered private placement debenture offering,
previously announced on October 22, 2013. The Company has raised an
additional $1,137,000 through the issuance of 1,137 Units (the
"Units"), for total aggregate amount of $2,337,000.
"With greater than expected demand we received for this offering, we are
happy to report that we have surpassed our goal of raising $2 million,"
said Mike Pascoe, President and CEO of Magor Corporation. "As a direct
result of this successful raise, we have significantly strengthened our
cash position, allowing us to continue to expand our global presence
through our sales channels, partners and the service providers whom we
are currently in trials with. Operationally, we continue to receive
orders from our key global customers, and due to high demand from the
Middle East, we recently opened an office in Dubai. Based on our
current growth in business, and as a result of this last capital raise,
we are confident we have enough capital to reach the significant
milestone of cash flow break even during fiscal 2015 (YE 4/30/15)."
Each Unit consists of a $1,000 par value 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% 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, subject to TSX Venture Exchange's acceptance, the principal for
shares, at the option of the holder. The brokered private placement was
led by Jacob Securities Inc. and included as part of the syndicate,
Richardson GMP Limited (the "Syndicate"), and resulted in the issuance
of 103,650 broker warrants to the Syndicate in connection with the
second tranche closing. Total cash compensation payable to the
Syndicate in connection with the second tranche closing was $11,760.
The aggregate proceeds raised under the offering will be used to
accelerate the growth opportunity associated with the Company's Aerus
cloud-based video collaboration solutions.
All securities issued pursuant to the Offering (and any underlying
securities) will be subject to a statutory four (4) month hold period,
expiring on June 7, 2014.
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.