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TORONTO, May 9, 2016 /CNW/ - VersaPay Corporation (TSXV: VPY) ("VersaPay" or the "Company"), is pleased to announce that it has closed its previously announced short form prospectus offering (the "Offering") of 4,600,000 common shares of the Company (the "Common Shares") at a price of $1.00 per share (the "Issue Price"), which includes 600,000 Common Shares issued pursuant to the exercise of the over-allotment option in full, for gross proceeds of $4,600,000.
The Offering was underwritten by a syndicate of underwriters led by Haywood Securities Inc. and includes Cormark Securities Inc. and PI Financial Corp. (collectively, the "Underwriters"). In consideration for their services, the Underwriters received a cash commission equal to 7.0% of the gross proceeds of the Offering, and such number of compensation options ("Compensation Options") equal to 7.0% of the aggregate number of Units issued pursuant to the Offering. Each Compensation Option is exercisable for one Common Share for a period of 24 months from closing of the Offering at the Issue Price.
The net proceeds from the Offering will be used for working capital and general corporate purposes, including sales, marketing and research and development.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the 1933 Act, or under the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold within the United States or to, or for the account or benefit of a U.S. person (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.
VersaPay is a leading cloud-based invoice presentment and payment provider for businesses of all sizes. VersaPay's ARC™ software-as-a-service offering allows businesses to easily deliver customized electronic invoices to their customers, to accept credit card and EFT payments and automatically reconcile payments to their ERP and accounting software. VersaPay is headquartered in Toronto, Canada and also has operations in Montreal and New York.
Forward Looking and Other Cautionary Statements
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including statements related to the use of proceeds of the Offering. Such forward-looking information is often, but not always, identified by the use of words and phrases such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved.
These forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business. Management believes that these assumptions are reasonable. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks related to the speculative nature of the Company's business, the Company's formative stage of development and the Company's financial position.
Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
Neither the 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 VersaPay Corporation
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For further information: John McLeod, Vice President, Marketing, VersaPay Corporation, 647-258-9406, firstname.lastname@example.org; Babak Pedram, Investor Relations, Virtus Advisory Group Inc., 416-644-5081, email@example.com