Magor Corporation Announces Closing of Private Placement
OTTAWA, Oct. 11, 2013 /CNW/ - Magor Corporation ("Magor" or the "Company") (TSXV: MCC), a global leader in visual collaboration solutions, today announced that it has closed its previously announced (see September 12th and September 26th News Releases) brokered private placement for aggregate gross proceeds of $1,452,325 ("the "Offering"), subject to receipt of the TSX Venture Exchange's final acceptance. In connection with the Offering, the Company issued a total of 5,809,300 units (the "Units") at a price of $0.25 per Unit. Each Unit consisted of one common share and one-half common share purchase warrant. Each whole share purchase warrant entitles the holder to purchase one additional common share at a price of $0.40 per share, for a period of 3 years following the closing date of the Offering. In accordance with applicable securities laws, the securities issued in connection with the Offering are subject to a minimum four month hold period, expiring on February 12, 2014. The brokered private placement was led by Jacob Securities Inc. and included as part of the syndicate, Macquarie Private Wealth Inc. (the "Syndicate"), and resulted in the issuance of 302,204 broker warrants to the syndicate. Total cash compensation payable to the Syndicate was $94,401.13, a portion of this compensation was payable through the issuance of an additional 65,000 Units. In conjunction with the financing, a number of existing investors swapped their freely trading shares for the newly issued shares, which are subject to a statutory four month hold.
Magor intends to use the gross proceeds from the Offering to accelerate the growth opportunity associated with the Company's Aerus cloud-based video collaboration solutions, which will be fully launched this fall.
"With this equity financing behind us, we are now in a stronger position to expand our Aerus cloud-based visual collaboration services through major global carriers and solutions integrators," said Mike Pascoe, the President and CEO of Magor Corporation. "We have been successful at securing requests for service trials with more than 20 carriers and solutions integrators around the globe, and this list continues to grow. We are also excited that the Magor story attracted a number of very reputable Canadian institutional investors to participate in this financing, and we look forward to working closely with them."
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