VANCOUVER, March 7 /PRNewswire-FirstCall/ - Voice Mobility International, Inc. (NEX: VMY.H) (OTCPINK: VMII) (Frankfurt: VMY), a Vancouver-based developer and provider of carrier and enterprise messaging solutions, announces that it has closed the debenture financing that was previously announced on February 2nd and 15th, 2011, for proceeds of $580,000.
In connection with the closing of the financing, the Company is also pleased to announce that it has completed the acquisition of all of the assets of Tagline Communications Inc. for total consideration of $425,000 and the issuance of 1,000,000 common shares of the Company.
The debentures are secured, bear interest at 12% per annum, and have a term of four months. As consideration for the debenture financing, the Company issued 1,500,000 common shares to an arm's length party. The Company has also settled $87,500 in outstanding debt through the issuance of 875,000 common shares at a deemed price of $0.10 per common share. The balance of the proceeds of the debenture financing are being used to settle existing indebtedness, and for working capital purposes.
"We are taking a step by step, methodical approach to executing on our stated strategy. With the strengthening of our balance sheet brought by the closing of the AVST transaction in February, 2011, we are now commencing our strategy of acquiring Cloud based unified communications ("UC") service providers. Each acquisition will lead us further along the path to profitability and value for our shareholders," commented Jay Hutton, CEO of VMI. "We are pleased that we were also able to take the opportunity to eliminate some of our debt in this transaction and will continue efforts to improve our financial position and grow our business through acquisition. The Tagline transaction is the first step in this acquisition strategy. We remain committed to the growth strategy that we communicated late last year."
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 Voice Mobility Inc.