- Minimum offering size of $1.0M fully committed -
OTTAWA,
Oct. 22, 2013 /CNW/ - Magor
Corporation ("Magor" or the "Company") (TSX-V: MCC), a global
leader in visual collaboration solutions, today announced that it
intends to complete a brokered private placement of subordinated
secured debentures in the aggregate minimum gross proceeds of
$1,000,000 and maximum gross proceeds
of up to $2,000,000 (the "Offering")
in units (the "Units"). Each Unit will be issued for $1,000 per Unit and shall consist of a
$1,000 par value senior secured
debenture (the "Debentures") and 1,000 common share purchase
warrants (each a "Warrant"). The Debentures shall mature four (4)
years from the date of issuance, unless redeemed at 102.0%, at the
option of the Company, and the Warrants are exercisable at a price
of $0.40 for a period of four (4)
years. The Debentures shall bear interest at an annual rate of 12%
of par value, payable every six (6) months in arrears in cash. On
maturity, the Company intends to settle the principal amount of the
Debentures for cash or subject to TSXV acceptance, for common
shares, at the option of the holder, under Policy 4.3 of the TSXV
Corporate Finance Manual. The syndicate, is led by Jacob Securities
Inc., and includes Macquarie Private Wealth Inc. (the
"Syndicate"). The Syndicate is offering the Units on a "best
efforts" basis and is pleased to confirm that current commitments
are $1,000,000.
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.
"This funding will help to accelerate our
investments into the sales and support of our exciting Aerus cloud
services offering," said Mike
Pascoe, President and CEO of Magor Corporation. "This debt
vehicle complements our recently closed equity placement to provide
a balanced approach to rive this funding."
The Offering remains subject to the approval of the
TSX Venture Exchange and the satisfaction of other customary
closing conditions. All securities issued pursuant to the Offering
(and any underlying securities) will be subject to a statutory four
(4) month hold period, commencing as at the closing date of the
Offering.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy securities in
the United States, or for an
account or benefit of U.S. persons (as such term is defined in
Regulation S under the United States Securities Act of 1933, as
amended).
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
