OTTAWA, Nov. 18, 2016 /CNW/ - Ackroo Inc. (TSX-V: AKR; OTC: AKRFF) ("Ackroo" or the "Company"), a gift card, loyalty and rewards technology and services provider, today announced it has closed a private placement for gross proceeds of $1,000,000. In connection with closing, the Company issued 5,000,000 common shares to subscribers at a price of $0.20 per share and 2,500,000 common share purchase warrants. Each common share purchase warrant entitles subscribers to purchase one additional common share of the Company at a price of $0.30 per share for a period of 24 months from the date of issuance. The warrants are subject to accelerated expiry in the event the Company's shares close at $0.40 or more for 10 consecutive trading days. In conjunction with the placement the Company has paid $14,940 and issued 67,200 common share purchase warrants as a commission to finder's who have introduced qualified investors to the Company. The finders' warrants are exercisable on the same terms as the private placement warrants. All securities issued on closing of the private placement are subject to a four month and a day hold period.
"This financing was key to our next phases of growth" said Steve Levely, chief executive officer at Ackroo. "The funds allow us to support our working capital requirements while also providing us with additional funds to hire more staff back into the Company to position us for scale. Our hiring plan has us adding staff into sales, marketing and product development which will allow the Company to better support our general operations, our channel partners and our current and prospective acquisitions. As we begin to create more departmental focus and improve on our ability to execute, these additional hires play a key role in our success. We believe not only will the additional staff assist us with closing the final gap of our operating losses, these individuals will help solidify our employee baseline so that we can continue to execute on our organic and inorganic growth plans and begin scaling the business further. An exciting win for the Company, our customers and for our shareholders."
In addition, Ackroo has granted options to purchase 235,000 common shares to officers, employees and consultants of the Company at a price of $0.20, for a period of 3 years. The grant is subject to the approval of the TSX Venture Exchange.
Ackroo provides gift card and loyalty processing solutions to help small to medium sized businesses attract, retain and grow their customers and their revenues. Through a SaaS based business model Ackroo provides an in-store and online automated solution to help merchants process gift card & loyalty transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their gift card and loyalty accounts. Ackroo also provides important marketing services to assist their merchants with utilizing Ackroo's technology solution. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
These forecasts and forward-looking statements are not guarantees of future performance and activities and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, but are not limited to: the company's ability to raise enough capital to support the company's go forward plans; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the company operates; projected capital expenditures and liquidity; changes in the company's strategy; government regulations and approvals; changes in customers' budgeting priorities; plus other factors that may arise. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Ackroo Inc.
For further information: Steve Levely, Chief Executive Officer, Ackroo, Tel: 613-599-2396 x730, Email: [email protected]