TORONTO, Feb. 12, 2015 /CNW/ - Sprylogics International Corp. ("Sprylogics" or the "Company") (TSXV: SPY), a technology provider of local mobile search, semantic search and messaging solutions for consumers and businesses is pleased to announce that it has closed an equity financing and convertible debenture financing totalling $1.83 million.
The funds raised will be an essential catalyst to begin marketing and growing the Breaking Sports app and advance business development initiatives in order to gain traction in the marketplace. The financing includes investment from a strategic entity that will be synergistic to the growth of Breaking Sports.
We are extremely pleased to complete this financing in order to start our marketing plan and reach our growth potential in this massive sports vertical," said Marvin Igelman, CEO of Sprylogics. "We have marketing initiatives that we have been waiting to implement. We are very encouraged by the initial response and engagement of users on our iOS version and excited about the upcoming launch of our Android version."
In early January the Company introduced Breaking Sports for iOS which was highly beneficial in gauging user feedback, ease of functionality and usage metrics, prior to any marketing activity. The initial feedback by users and industry has been tremendous and daily user engagement has been very high.
Users not only love the app and its ability to deliver fast and breaking news generated from social media feeds, but are spending considerable time on it each day, checking the latest notifications, news, scores, rumours, injuries and more. Users can gain additional utility from following a game, which provides them with a real-time flow of in-game statistics and "play-by-play" and well and crucial lineup changes prior to games which are beneficial to fantasy sports players and sports enthusiasts alike.
The Company is readying to launch its Android version of Breaking Sports app shortly, as well as an upgrade of its iOS version, both prior to the beginning of its multi-faceted marketing strategy.
Marketing initiatives for the Breaking Sports app in the coming days will include, as previously announced, an extensive Radio package with Fox Sports Radio. As part of the agreement, Breaking Sports will be integrated within FOX Sports Radio's leading lineup of 24/7 programming, which reaches nearly five million weekly listeners on more than 400 radio stations nationwide. Throughout the day "Trending Now" sports updates presented by Breaking Sports will be delivered during popular programs including The Dan Patrick Show, The Rich Eisen Show, Jay Mohr Sports, Steve Gorman Sports! and J.T. The Brick, keeping sports listeners up to date on the latest news and information.
Pursuant to the announced financing, the Company issued 3,801,714 units at an issue price of $0.35 per unit for gross proceeds of $1,330,600. Each unit is comprised of one common share of the Company and one common share warrant, with each warrant exercisable into a common share of the Company at an exercise price of $0.45 per share for a period of 24 months.
The Company also issued a principal amount $500,000 convertible debenture which will be convertible into common shares of the Company at conversion price of $0.38 per share until maturity. The convertible debenture will mature in 24 months and will carry no interest charge. The holder of the convertible debenture also received 1,315,789 warrants, with each warrant exercisable into a common share of the Company at an exercise price of $0.50 per share for a period of 24 months.
The Company also proposes to issue 428,571 common shares to settle an aggregate of $150,000 in outstanding debt. The completion of the debt settlement remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
All shares issued in connection with the equity and convertible debt financings and the debt settlement will be subject to a hold period of four months and a day from the date of issuance.
Sprylogics International Corp. is a technology provider of local mobile search, semantic search and messaging solutions for consumers and businesses.
The Company enables telecom operators, messaging and mobile application providers to introduce new revenue streams into their apps with its "Poynt-Enabled" SDK. Sprylogics semantically aggregates and distributes useful local content by making it searchable via its patented geographical and contextual targeting technology. Sprylogics also markets Poynt; an award winning, all-in-one mobile local search App that has garnered over 20 million downloads as well as its newest App, Breaking Sports.
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.
Cautionary and Forward-looking Statements - Statements contained in this news release, which are not historical facts, are forward-looking statements that involve risk, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements included in this news release are based on information available to the Company on the date hereof. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results of Sprylogics to differ materially from the conclusion, forecast or projection stated in such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to factors referenced in Sprylogics' other continuous disclosure filings, which are available at www.sedar.com. Readers should not place undue reliance on these forward-looking statements. The Company assumes no obligation to update any forward-looking statements, except as required by applicable securities laws.
SOURCE Sprylogics International Corp.
For further information: Sprylogics International Corp., David Berman, CFO, (905) 761-9200, Ext. 21, firstname.lastname@example.org