VANCOUVER, Feb. 29, 2016 /CNW/ - VidWRX Inc. (the "Company" or "VidWRX") (TSXV:VID) announces a private placement (the "Private Placement") of secured debentures (the "Debentures") for gross proceeds of up to $2,000,000. The Debentures will be secured by a floating charge over the assets of the Company, will bear interest at a rate of twelve percent per annum capitalized and payable on maturity, and will mature eighteen months from the date of issue. Holders of the Debentures will also be entitled to receive ongoing royalty payments of five percent of the gross revenue of the Company during a fiscal year, payable annually and on an ongoing basis until such time as aggregate payments reach $1,500,000.
Proceeds of the Private Placement will be placed in escrow and will only be releasable to the Company on the satisfaction of certain revenue-based milestones. In the event such milestones are not satisfied any remaining proceeds held in escrow will be returned to subscribers on a pro rata basis. In connection with the Private Placement, the Company will reserve up to 8,000,000 common shares to be paid as a bonus to subscribers, pro rata, as funds are released to the Company from escrow.
All securities issued in connection with the Private Placement will be subject to a four-month-and-one-day statutory hold period. Closing of the Private Placement remains subject to a number of conditions, including approval of the TSX Venture Exchange, the negotiation of definitive agreements, and such other conditions as are customary in transactions of this nature.
Founded in 2006 as SoMedia Networks, VidWRX has reengineered how businesses access affordable, high quality video content creation, production and deployment. Combined with its online platform and proven processes, VidWRX' expert production teams ensure exceptional customer service and affordable, high quality videos. The cloud-based VidWRX platform provides scalable video production services to marketers, web marketing firms, directories, and digital agencies in any volume, anywhere in North America.
Neither the 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. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities 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 within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Certain information contained in this document may include "forward-looking information". Without limiting the foregoing, the information and any forward-looking information may include statements regarding the closing of the Offering, the filing of a preliminary and final prospectus and the use of proceeds of the Offering. In this document, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking statements and information are based on information available at the time and/or the Company management's good-faith beliefs with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Company's control. For additional information with respect to these and other factors and assumptions underlying the forward-looking statements made in this press release, see the section entitled "Risks and Uncertainties" in the Management's Discussion and Analysis of the Company for its most recent interim financial statements filed with the Canadian securities commissions. The forward-looking information set forth herein reflects the Company's expectations as at the date of this press release and is subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
The Company does not intend, nor does it undertake, any obligation to update or revise any forward-looking information or statements contained in this document to reflect subsequent information, events or circumstances or otherwise, except as required by applicable laws.
SOURCE VidWRX Inc
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For further information: Company Contact: George Fleming, CEO, Tel: 604.683.5510 ext. 888, Email: firstname.lastname@example.org; Investor Relations / Howard Group: Dave Burwell, 1-888-221-0915, Email: email@example.com