/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
OTTAWA, Sept. 2, 2015 /CNW/ - ProntoForms Corporation (TSX.V:PFM) ("ProntoForms" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters, led by Beacon Securities Limited and including Global Maxfin Capital Inc. (collectively, the "Underwriters"), which has agreed to purchase on a "bought deal" private placement basis 7,500,000 units (the "Units") of the Company at a price of $0.30 per Unit (the "Offering Price") for aggregate gross proceeds to the Company of $2,250,000 (the "Offering"). PowerOne Capital Markets Limited will act as a special selling group member in conjunction with the Offering.
Concurrent with the Offering, the Company intends to complete a non-brokered private placement with certain insiders of the Company of 2,500,000 Units at the Offering Price for additional aggregate gross proceeds to the Company of $750,000 (the "Concurrent Private Placement"). Each Unit will consist of one common share (a "Common Share") in the capital of the Company and one half of one common share purchase warrant (each whole warrant, a "Warrant") of the Company. Each whole Warrant will entitle the holder thereof to acquire one Common Share at an exercise price per Common Share of $0.45 for a period of 18 months from the closing of the Offering (the "Closing Date").
The Company has granted the Underwriters an option to purchase up to an additional 1,500,000 Units at the Offering Price, exercisable in whole or in part, by way of written notice to the Company at any time up to 48 hours prior to the Closing Date. The Company plans to use the net proceeds from the Offering and Concurrent Private Placement for working capital and general corporate purposes.
"We have a track record of achieving strong customer and revenue acquisition results with the investments that we have made. This additional capital will strengthen our balance sheet and allow us to continue our momentum," said Alvaro Pombo, CEO ProntoForms. "We also want to make the most of large opportunities that we have within our industry ecosystem, including those that we have previously announced with Apple, AT&T and others."
The Offering and Concurrent Private Placement are expected to close on or about September 16, 2015 and are subject to certain conditions including, but not limited to, the receipt of applicable regulatory approvals, including approval of the TSX Venture Exchange ("TSXV"), as well as the satisfaction of other customary closing conditions. The Units will be sold in all of the provinces of Canada on a private placement basis pursuant to "accredited investor" exemption or other available and agreed upon exemptions from prospectus requirements. The Units, including all underlying securities thereof, will have a hold period of four months and one day from the Closing Date.
This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
ProntoForms is a mobile workflow platform used by more than 3,500 businesses to collect and analyze field data with smartphones and tablets. Our product delivers an intuitive, secure and scalable solution for mobilizing business processes, with a very low total cost of ownership. Our customers harness the solution to increase productivity and reduce cost, improve quality of service and mitigate risks.
ProntoForms is the winner of the 2015 Frost & Sullivan Competitive Strategy Innovation and Leadership Award for the Mobile Forms Industry.
The company trades on the TSXV under the symbol PFM. ProntoForms is the registered trademark of ProntoForms Inc., a wholly owned subsidiary of ProntoForms Corporation.
Certain information in this press release may constitute forward-looking information within the meaning of applicable Canadian securities legislation. For example, statements about the timing and completion of the Offering and Concurrent Private Placement, the receipt of required regulatory approvals for the Offering and Concurrent Private Placement, the expected use of proceeds from the Offering and Concurrent Private Placement and the Company's future growth or value are forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company
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 ProntoForms Corporation
For further information: Alvaro Pombo, Chief Executive Officer, ProntoForms Corporation, (613) 599.8288 ext. 1111, firstname.lastname@example.org; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., (416) 644-5081, email@example.com