/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR DISSEMINATION IN THE UNITED
STATES/
OTTAWA, Sept. 2, 2015 /CNW/ - ProntoForms
Corporation (TSX.V:PFM) ("ProntoForms" or the
"Company") is pleased to announce that it has entered into
an agreement with a syndicate of underwriters, led by Beacon
Securities Limited and including Global Maxfin Capital Inc.
(collectively, the "Underwriters"), which has agreed to
purchase on a "bought deal" private placement basis 7,500,000 units
(the "Units") of the Company at a price of $0.30 per Unit (the "Offering Price") for
aggregate gross proceeds to the Company of $2,250,000 (the "Offering"). PowerOne
Capital Markets Limited will act as a special selling group member
in conjunction with the Offering.
Concurrent with the Offering, the Company intends to complete a
non-brokered private placement with certain insiders of the Company
of 2,500,000 Units at the Offering Price for additional aggregate
gross proceeds to the Company of $750,000 (the "Concurrent Private
Placement"). Each Unit will consist of one common share (a
"Common Share") in the capital of the Company and one half
of one common share purchase warrant (each whole warrant, a
"Warrant") of the Company. Each whole Warrant will entitle
the holder thereof to acquire one Common Share at an exercise price
per Common Share of $0.45 for a
period of 18 months from the closing of the Offering (the
"Closing Date").
The Company has granted the Underwriters an option to purchase
up to an additional 1,500,000 Units at the Offering Price,
exercisable in whole or in part, by way of written notice to the
Company at any time up to 48 hours prior to the Closing Date. The
Company plans to use the net proceeds from the Offering and
Concurrent Private Placement for working capital and general
corporate purposes.
"We have a track record of achieving strong customer and revenue
acquisition results with the investments that we have made. This
additional capital will strengthen our balance sheet and allow us
to continue our momentum," said Alvaro
Pombo, CEO ProntoForms. "We also want to make the most of
large opportunities that we have within our industry ecosystem,
including those that we have previously announced with Apple,
AT&T and others."
The Offering and Concurrent Private Placement are expected to
close on or about September 16, 2015
and are subject to certain conditions including, but not limited
to, the receipt of applicable regulatory approvals, including
approval of the TSX Venture Exchange ("TSXV"), as well as
the satisfaction of other customary closing conditions. The Units
will be sold in all of the provinces of Canada on a private placement basis pursuant
to "accredited investor" exemption or other available and agreed
upon exemptions from prospectus requirements. The Units, including
all underlying securities thereof, will have a hold period of four
months and one day from the Closing Date.
This news release does not constitute an offer of securities for
sale in the United States. The
securities being offered have not been, nor will be, registered
under the United States Securities Act of 1933, as amended, and
such securities may not be offered or sold within the United States absent U.S. registration or
an applicable exemption from U.S. registration requirements.
About ProntoForms
ProntoForms is a mobile workflow platform used by more than
3,500 businesses to collect and analyze field data with smartphones
and tablets. Our product delivers an intuitive, secure and scalable
solution for mobilizing business processes, with a very low total
cost of ownership. Our customers harness the solution to increase
productivity and reduce cost, improve quality of service and
mitigate risks.
ProntoForms is the winner of the 2015 Frost & Sullivan
Competitive Strategy Innovation and Leadership Award for the Mobile
Forms Industry.
The company trades on the TSXV under the symbol PFM. ProntoForms
is the registered trademark of ProntoForms Inc., a wholly owned
subsidiary of ProntoForms Corporation.
Certain information in this press release may constitute
forward-looking information within the meaning of applicable
Canadian securities legislation. For example, statements about the
timing and completion of the Offering and Concurrent Private
Placement, the receipt of required regulatory approvals for the
Offering and Concurrent Private Placement, the expected use of
proceeds from the Offering and Concurrent Private Placement and the
Company's future growth or value are forward-looking information.
This information is based on current expectations that are subject
to significant risks and uncertainties that are difficult to
predict. Actual results might differ materially from results
suggested in any forward looking statements. The Company assumes no
obligation to update the forward-looking statements, or to update
the reasons why actual results could differ from those reflected in
the forward-looking statements unless and until required by
securities laws applicable to the Company
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 ProntoForms Corporation
