VANCOUVER, Oct. 19 /CNW/ - IP Applications Corporation (TSX-V: IPX)
announces that, further to the Company's press release earlier today, the
Company has been advised that Pender Growth Fund (VCC) Inc. and Pender
Financial Group Corporation have completed a sale of 5,590,300 shares of the
Company at $0.15 per share through the facilities of the TSX Venture Exchange.
The net proceeds from this sale will be used to fund Pender Growth Fund (VCC)
Inc.'s and Pender Financial Group Corporation's respective portions of the
previously announced private placement of up to $1,200,000.
John Jacobson, President and CEO said "With the new opportunities we're
seeing and the new contracts we're winning in the rapidly expanding Software
as a Service (SaaS) market, IP Applications needs capital to grow. This share
sale funds a significant part of the private placement that provides the
growth capital we need.
The overall transaction, including the private placement and the
settlement of the company's debt, simplifies the balance sheet and removes the
debt burden on operations. I'd like to express our appreciation to the
Company's shareholders and our lenders, Pender Growth Fund (VCC) Inc. and
Pender Financial Group Corporation, for their continuing support during the
Kelly Edmison, Chairman of the Company, CEO of Pender Financial Group and
Chairman of Pender Growth Fund said "This concludes the realignment and
reorganization of IP Applications that began several years ago. Since the
beginning of 2005, under John's leadership, the Company has cut costs and
focused on its customers, changing the product mix to higher margin business.
IP Applications has developed new products in response to customer needs and
has developed key relationships to the point where they are an integral part
of its customers' business processes.
Notwithstanding the dramatic increase in the value of the Canadian
dollar, the Company's financial performance has improved markedly, so that it
is now approaching profitability.
With all the opportunities presenting themselves and the proven sales and
product delivery model we expect great progress in 2008 and beyond. As a
proven recurring revenue model company, we expect the company valuation to
improve as the capital markets begin to understand the potential of the
IP Applications business model."
About IP Applications
The Company delivers business process automation and customer care for
companies in the rapidly expanding Software-as-a-Service ("SaaS") market. IP
Applications' customers use the Company's data center and staff to run
particular segments of their business operations. While customers are left to
focus on their product marketing and technology, IP Applications solves the
end user satisfaction and subscriber management issues for them.
This press release may contain forward-looking statements. Actual events
or results may differ materially from those described in the forward-looking
statements due to a number of risks and uncertainties. Forward-looking
statements are based on management's estimates, beliefs, and opinions. The
company assumes no obligation to update forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Richard Topham, CFO, D (604) 630-5657, E