- Company to accelerate the development and marketing of its mobile sports apps
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 relevant content.
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 States."
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, 2013.
Canaccord Genuity Corp. provided theScore with strategic financial advice in connection with the private placement.
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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.
Chief Financial Officer