-Second Tranche to be closed in January 2014-
OTTAWA, Dec. 23, 2013 /CNW/ - Magor Corporation ("Magor" or the "Company") (TSX-V: MCC), a global leader in visual collaboration solutions, is pleased to announce that it has closed the first tranche of its brokered private placement debenture offering, previously announced on October 22, 2013. The Company has raised $1,200,000 through the issuance of 1,200 Units (the "Units").
"We are delighted to successfully raise capital in this very challenging market, and based on the outstanding interest we have from a number of investors, we are scheduled to close the second tranche by mid-January," said Mike Pascoe, President and CEO of Magor Corporation. "We continue to see solid growth in our existing software transaction business as we accelerate growth with existing clients and adding new high profile clients. In addition, with a number of exciting opportunities ahead with our Aerus cloud-based offering accompanied by a stronger balance sheet, we are well positioned to further accelerate our growth and create significant shareholder value in the new year."
Each Unit consists of a $1,000 par value secured debenture (the "Debentures") and 1,000 common share purchase warrants (each a "Warrant"). The Debentures shall mature four (4) years from the date of issuance, unless redeemed at 102.0% and the Warrants are exercisable at a price of $0.40 for a period of four (4) years. The Debentures shall bear interest at an annual rate of 12% of par value, payable every six (6) months in arrears in cash. On maturity, the Company intends to settle, subject to TSX-V acceptance, the principal for shares, at the option of the holder. The brokered private placement was led by Jacob Securities Inc. and included as part of the syndicate, Richardson GMP Limited (the "Syndicate"), and resulted in the issuance of 197,475 broker warrants to the Syndicate. Total cash compensation payable to the Syndicate was $50,640.
The aggregate proceeds raised under the offering will be used to accelerate the growth opportunity associated with the Company's Aerus cloud-based video collaboration solutions.
All securities issued pursuant to the Offering (and any underlying securities) will be subject to a statutory four (4) month hold period, expiring on April 24, 2014.
About Magor Corporation:
Magor enables people to engage in high-quality visual conversations while simultaneously sharing, viewing and editing relevant collaborative material on desktops, laptops, tablets, smartphone applications, whiteboards and other devices. Magor fits any workflow so that users have the freedom to work together naturally anytime, regardless of location, network or device. To find out more about Magor Corporation (TSX-V: MCC), visit our website at http://www.magorcorp.com.
Disclaimer in regards to Forward-looking Statements
Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. Except as required by law, Magor does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.
Neither 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.
SOURCE: Magor Corporation
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