ProntoForms Announces $4.5 Million Private Placement Financing
OTTAWA, Ont. - May 30, 2017 - ProntoForms Corporation (TSX.V:PFM) ("ProntoForms" or the "Company") is pleased to announce that it has entered into an agreement with Beacon Securities Limited and PI Financial Corp. (collectively the "Co-Lead Underwriters"), on their own behalf and on behalf of a syndicate of underwriters (together with the Co-Lead Underwriters, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase on a "bought deal" private placement basis 11,900,000 units (the "Units") of the Company at a price of $0.38 per Unit (the "Offering Price") for aggregate gross proceeds to the Company of $4,522,000 (the "Offering").
Each Unit shall 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 shall entitle the holder thereof to acquire one Common Share at an exercise price per Common Share of $0.48 for a period of 24 months from the Closing Date (as defined below).
The Company has granted the Underwriters an option (the "Underwriters' Option") to purchase up to an additional 1,980,000 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. In the event the Underwriters' Option is exercised in full, the aggregate gross proceeds to the Company under the Offering will be $5,274,400.
The Company plans to use the net proceeds from the Offering for working capital and general corporate purposes. The Offering is expected to close on or about June 21, 2017 (the "Closing Date") and is 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 ofCanada on a private placement basis pursuant to an "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 Corporation
ProntoForms is a global leader in automating mobile workflows. The Company's platform is used to collect and analyze field data with smartphones and tablets, and offers a low total cost of ownership. The Company's 3,500 customers harness the intuitive, secure and scalable solution to increase productivity, improve quality of service, and mitigate risks. ProntoForms has received a number of prominent industry awards, including the 2016 Deloitte Technology Fast 50, the 2016 CIX Public Top 20, the Ottawa Chamber of Commerce 2016 Employees' Choice Award and 2016 Best Ottawa Business Award, and 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.
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