Magor Corporation Closes First Tranche of Non-Brokered Debenture Offering

OTTAWA, Oct. 2, 2014 /CNW/ - Magor Corporation ("Magor" or the "Company") (TSX-V: MCC), a technology leader in visual collaboration solutions, is pleased to announce that it has closed the first tranche of its non-brokered private placement of subordinated secured debentures offering, previously announced on September 5, 2014. The Company has raised $1,525,000 through the issuance of 1,525 Units (the "Units").

Each Unit consists of a $1,000 par value senior secured debenture (the "Debentures") and 500 common share purchase warrants (each a "Warrant"). The Debentures shall mature three (3) years from the date of issuance, unless redeemed at 102.0%, at the option of the Company or unless converted into common shares of Magor at the conversion rate of $0.30 per common share. The Warrants are exercisable at a price of $0.44 for a period of three (3) years. The Debentures shall bear interest at an annual rate of 12% of par value, payable every six (6) months in arrears in cash.

Finder's fees paid in connection with the Offering totaled $26,250 in cash, plus 87,500 warrants (the "Finder's Warrants").  Each Finder's Warrant is exercisable at $0.40 for a period of two (2) years from the date of closing.

Magor intends to use the gross proceeds from the Offering for general working capital purposes.  

All securities issued pursuant to the Offering (and any underlying securities) will be subject to a statutory four (4) month hold period, commencing as at the closing date of the Offering.

About Magor Corporation:

Magor develops and markets visual collaboration software for a world that increasingly rewards those who can bring together the right people and information at the right time.  Magor's Aerus service delivery platform removes the limitations of traditional video conferencing and collaboration tools to provide entirely new ways of interacting with video with the goal of creating new ways to be productive. 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

Mike Pascoe, President and CEO, Magor Corporation, 613-686-1731, [email protected]; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-995-8651, [email protected]