Quorum Announces $7 Million Bought Deal Private Placement Common Share Offering
18 October 2019 - 9:47PM
Quorum Information Technologies Inc. (TSX Venture: QIS) (“Quorum”
or the “Company”), a leading provider of dealership and customer
management software and value-added services to the automotive
industry, is pleased to announce that is has entered into an
agreement with a syndicate of underwriters led by Cormark
Securities Inc. (collectively the “Underwriters”) pursuant to which
the Underwriters have agreed to purchase, on a “bought deal”
private placement basis, 8,046,000 common shares (the “Shares”) of
the Company at a price of $0.87 per Share (the “Issue Price”),
representing gross proceeds to the Company of approximately $7.0
million (the “Offering”).
The Underwriters have also been granted an
option (the “Underwriters’ Option”), exercisable in whole or in
part at any time prior to the closing date, to purchase for resale
up to an additional 15% of the Shares sold pursuant to the Offering
at the Issue Price. In the event that the Underwriters’ Option is
exercised in its entirety, the aggregate gross proceeds of the
Offering will be C$8,050,023.
The net proceeds of the Offering will be used
for growth initiatives, working capital, general corporate purposes
and future potential acquisition opportunities.
The Shares will be offered for sale on a private
placement basis pursuant to applicable exemptions from the
prospectus and registration requirements in the following
jurisdictions in all of the Provinces of Canada and elsewhere.
The Offering is anticipated to close on or about
November 7, 2019 and is subject to certain conditions including,
but not limited to, the receipt of all necessary approvals
including the approval of the TSX Venture Exchange and any
applicable securities regulatory authorities.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy the securities in
any jurisdiction, nor shall there be any sale of the Shares in any
state in which such offer, solicitation or sale would be unlawful.
The Shares will not be and have not been registered under the
United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States, or to, or for the account or
benefit of U.S. persons, absent registration or an applicable
exemption from the registration requirements.
About Quorum
Quorum is a North American company focused on
developing, marketing, implementing and supporting its portfolio of
software and services for automotive dealerships that includes:
- XSELLERATORTM, a Dealership Management System (DMS) that
automates, integrates and streamlines key processes across
departments in a dealership, and emphasizes revenue generation and
customer satisfaction.
- DealerMine CRM, a sales and service Customer Relationship
Management system and set of Business Development Center services
that drives revenue into the critical sales and service departments
in a dealership.
- Autovance, a sales desking and F&I menu solution that
increases sales department gross margins and improves customer
satisfaction for dealerships.
- Advantage, a full showroom system for both franchised and
independent dealerships and a comprehensive operating system that
includes accounting for the independent market.
Quorum Information Technologies Inc. is traded
on the Toronto Venture Exchange (TSX-V) under the symbol QIS. For
additional information please go to
www.QuorumInformationSystems.com.
Forward-Looking
Information.
This press release may contain certain
forward-looking statements and forward-looking information
("forward-looking information") within the meaning of applicable
Canadian securities laws. Forward-looking information is often, but
not always, identified by the use of words such as "anticipate",
"believe", "plan", "intend", "objective", "continuous", "ongoing",
"estimate", "expect", "may", "will", "project", "should" or similar
words suggesting future outcomes. In particular, this press release
includes forward-looking information relating to the Offering,
including anticipated use of proceeds and timing of closing of the
Offering. Quorum believes the expectations reflected in such
forward-looking information are reasonable but no assurance can be
given that these expectations will prove to be correct and such
forward- looking information should not be unduly relied upon.
Forward-looking information is not a guarantee
of future performance and involves a number of risks and
uncertainties some of which are described herein. Such
forward-looking information necessarily involves known and unknown
risks and uncertainties, which may cause Quorum's actual
performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such 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) has reviewed this release and
neither accepts responsibility for the adequacy or accuracy of this
release.
Quorum Contact: Maury Marks
403-777-0036MarksM@QuorumDMS.com
PDF
available: http://ml.globenewswire.com/Resource/Download/c273dc06-3a8d-48b6-a4c1-a73ae96295d6
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