VANCOUVER, Sept. 10, 2015 /CNW/ - TIO Networks Corp. (TSX-V: TNC) ("TIO" or "TIO Networks" or the "Company"), is pleased to announce it has closed the non-brokered private placement in the amount of $2,174,000 representing 2,012,957 common shares. The Company has received all necessary approvals required to finalize this placement. The shares are subject to resale restrictions for a period of 4 months from today's date.
Prior to announcing the Softgate acquisition, TIO had signed a non-binding term sheet with a debt financier that provided the Company with a commitment for funding of up to $10M USD in debt financing subject to final due diligence. This term sheet required that TIO execute an equity placement of at least $1.5M USD to be subscribed by members of the Company's management and board only. This private placement fully satisfies this condition and positions the company to close the Softgate transaction once all regulatory approvals have been obtained.
Twelve members from TIO's management team participated in this private placement and invested $844,000 CAD or 39% of the total offering led by the CEO who was the largest placee from the management team with an investment of $400,000 CAD. The largest overall placee in the financing was Core Innovation Capital who purchased a further $1.33M CAD worth of shares. There were no other placees other than Core Innovation Capital and TIO's management team. Core Innovation Capital participated in this financing on the same terms and conditions as the other placees, except for the renewal of their existing Shareholder Rights Agreement.
"This private placement transaction not only satisfies our equity funding requirements under our current debt funding term sheet but it also demonstrates confidence by TIO's management team, the Board of Directors and the Company's largest shareholder in the Company's overall business plan which includes the acquisition of Softgate Systems, Inc." said Hamed Shahbazi, CEO of TIO Networks. "We look forward to finalizing the acquisition and demonstrating our continued growth and profitability".
The Company did not pay any fees to any parties in connection with this placement.
To learn more, visit: www.TIOnetworks.com
About TIO Networks
TIO is a multi-channel cloud-based bill payment processor serving the largest telecom, wireless, cable and utility bill issuers in North America. With more than 70,000 endpoints, TIO symbolizes fast, convenient and secure bill payment. Visit: www.TIOnetworks.com. Join the conversation: www.twitter.com/TIOnetworks or Like us: http://www.facebook.com/TIOnetworks
The TSX Venture Exchange has not reviewed this news release.
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.
The statements made in this news release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from TIO's expectations and projections.
SOURCE TIO Networks Corp.
For further information: John Lewis, Business Development - TIO Networks, 416-523-7086; [email protected]