CALGARY, Feb. 15, 2017 /CNW/ - Ivrnet Inc. (TSXV: IVI) ("Ivrnet" or the "Corporation") announces the signing and financing of seven new contracts for its Ivrnet Central membership management software.
Ivrnet has signed three Edmonton residential community organizations to long-term contracts to employ Ivrnet Central for fee collection, member registration and community facilities. Collectively, the three contracts are worth a total of $210,000 over a five-year period.
Ivrnet signed four Calgary residential community organizations in January, 2017 to long-term contracts to employ Ivrnet Central. In total, the contracts are worth $510,000 over a five-year period. One of the contracts is for one-year with a four-year extension option.
"We are right on target," explains Ivrnet CEO David Snell. "We are maintaining our goal of signing one new Ivrnet Central community per month."
The first client to be deployed under these new contracts was the 4,500 home Lake Summerside Residents Association. Further information and comments about the successful deployment can be found under "News" on the Ivrnet website (www.ivrnet.com).
Ivrnet CEO David Snell explained that all seven organizations can add additional Ivrnet Central features to accommodate their growing organizational requirements over the term of the contract. This in turn would mean additional revenue growth for Ivrnet.
As is common business practice, a portion of the contracts were financed to provide the upfront capital required for configuration, customization, installation and training. It is typical in the software industry to finance and recognize revenue on contracts as 50% of the contract upfront and 50% over time. Ivrnet projects to finance and recognize between 35% and 50% of major Ivrnet Central contracts upfront, with the balance recognized over time.
As per the terms and conditions of the $3,000,000 credit facility provided by R.C. Morris & Company Special Opportunities Debt Fund III LP; previously announced on August 3, 2016, financing of $300,825 was provided at a cost of 17% and 421,155 share purchase warrants at a market price of $0.05. The Warrants expire no later than five (5) years from date of issuance. Warrants and any shares issued upon exercise of the warrants are subject to a 4-month hold period from the date of closing or date of exercise of the warrants. These Contracts and their sale and financing is structured so that the 17% interest on the $300,825 is recovered by Ivrnet over the course of the contract.
Ivrnet Central provides online management of operations and financial processing for membership driven organizations. Ivrnet Central is a mission critical part of operations for both Resident and Community Associations. Ivrnet Central automates and secures the registration and payment of fees for programs, classes, facility rentals and annual memberships, reducing the association's manpower costs for managing, auditing and securing these activities.
Ivrnet is a software and communications company that develops, hosts, sells and supports value added business process improvement and advertising software applications, delivered through the traditional phone network and the Internet. These applications facilitate automated interaction through personalized communication between people; mass communication for disseminating information to thousands of people concurrently and personalized communication between people and automated systems. Ivrnet's applications are accessible through nearly any form of communication technology, at any time, from anywhere in North America via voice, phone, fax, email, texting and the Internet.
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SOURCE IVRnet Inc.
For further information: Chris L. Topolniski - Chief Operating Officer, Ivrnet, Direct: (403) 538-9722, Cellular: (403) 870-2434, E-mail: [email protected]