BRAMPTON, ON, July 4, 2016 /CNW/ - DATA Group Ltd. (TSX:
DGI) ("DATA" or the "Corporation") announced today
that it has changed its name to "DATA Communications Management
Corp." (the "Name Change") and consolidated its issued and
outstanding common shares ("Common Shares) on the basis of
one post-consolidation Common Share for each 100 pre-consolidation
Common Shares (the "Share Consolidation") and that its
Common Shares will commence trading under the new stock symbol of
"DCM". The Name Change and Share Consolidation were each
approved at the annual and special meeting of the Corporation's
shareholders held on June 30,
2016.
Name Change
The Name Change is an integral part of DATA's corporate
re-branding announced in March of this year.
"Since we re-branded back in March of this year, we've had an
overwhelmingly positive response to our new visual identity and
value story from our customers and shareholders. This formal
name change is the next logical step to align our legal company
name to our new brand identity," said Jeff
Gladwish, Vice President, Marketing & Corporate
Development.
Share Consolidation
After giving effect to the Share Consolidation, the
1,197,504,525 Common Shares outstanding (which includes the Common
Shares issued pursuant to the private placement described below)
were consolidated into approximately 11,975,053 Common Shares
outstanding. No fractional Common Shares were issued, and any
fractional share entitlements resulting from the Share
Consolidation were rounded up to the nearest whole number of Common
Shares.
DATA believes the Share Consolidation will provide the
Corporation with a share capital structure that will better attract
investors and equity financing and enhance future growth
opportunities.
The exercise price and number of Common Shares issuable, and
other entitlements, under awards granted pursuant to the
Corporation's long-term incentive plan have been proportionately
adjusted to reflect the Share Consolidation.
Additionally, the conversion price of the Corporation's 6.0%
convertible unsecured subordinated debentures has been
proportionately adjusted to reflect the Share Consolidation.
A letter of transmittal has been mailed to registered holders of
Common Shares providing instructions to surrender the certificates
evidencing their Common Shares for replacement certificates
representing the number of Common Shares to which they are entitled
as a result of the Share Consolidation. Until surrendered,
each certificate representing Common Shares prior to the Share
Consolidation will be deemed for all purposes to represent the
number of Common Shares to which the holder of that certificate is
entitled as a result of the Share Consolidation.
New Stock Symbol and Post-Consolidation Trading
The Common Shares are expected to commence trading on the
Toronto Stock Exchange on a post-consolidation basis at market open
on July 7, 2016 under the new stock
symbol "DCM" with a new CUSIP number 23761M102. The
Debentures are expected to commence trading on the Toronto Stock
Exchange at market open on July 7,
2016 under the new stock symbol "DCM.DB" with a new CUSIP
number 23761MAA0.
Approval and Completion of Private Placement to KST
Industries Inc.
The Corporation also announced that, following receipt of
disinterested shareholder approval at the annual and special
meeting of the Corporation's shareholders held on June 30, 2016, it has completed the previously
announced private placement of 30,895,781 Common Shares to KST
Industries Inc. ("KST") at a price of $0.014 per share as part of the $2.8 million private placement announced by the
Corporation on May 27, 2016.
About DATA Communications Management Corp.
At DATA, we are experts at planning and driving business
communications. We help marketers and agencies unify and execute
communications campaigns across multiple channels, and we help
operations teams streamline and automate document and
communications management processes. Our core capabilities include
direct marketing, print services, labels and asset tracking, event
tickets and gift cards, logistics and fulfilment, content and
workflow management, data management and analytics, and regulatory
communications. We serve clients in key vertical markets such as
financial services, healthcare, lottery and gaming, retail,
not-for-profit, and energy. We are strategically located across
Canada to support clients on a
national basis, and serve the U.S. market through our facilities in
Chicago, Illinois.
Additional information relating to DATA Communications
Management Corp. is available on www.datacm.com, and in the
disclosure documents filed by DATA Communications Management Corp.
on the System for Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com.
Forward-Looking Statements
Certain statements in this press release constitute
"forward-looking" statements that involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance, objectives or achievements of DATA, or industry
results, to be materially different from any future results,
performance, objectives or achievements expressed or implied by
such forward-looking statements. When used in this press
release, words such as "may", "would", "could", "will", "expect",
"anticipate", "estimate", "believe", "intend", "plan", and other
similar expressions are intended to identify forward-looking
statements. These statements reflect DATA's current views
regarding future events and operating performance, are based on
information currently available to DATA, and speak only as of the
date of this press release. These forward-looking statements
involve a number of risks, uncertainties and assumptions and should
not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of whether or not such
performance or results will be achieved. Many factors could
cause the actual results, performance, objectives or achievements
of DATA to be materially different from any future results,
performance, objectives or achievements that may be expressed or
implied by such forward-looking statements. The principal
factors, assumptions and risks that DATA made or took into account
in the preparation of these forward-looking statements include
market acceptance of the change in the Corporation's legal name;
the effect of the share consolidation; and the other factors
described in DATA's management information circular dated
June 1, 2016 for the annual and
special meeting of DATA's shareholders held on June 30, 2016 and DATA's annual information form
for the year ended December 31, 2015
dated March 30, 2016.
Additional factors are discussed under the headings "Risk
Factors" and "Risks and Uncertainties" in DATA's management's
discussion and analysis and in DATA's other publicly available
disclosure documents, as filed by DATA on SEDAR (www.sedar.com).
Should one or more of these risks or uncertainties
materialize, or should assumptions underlying the forward-looking
statements prove incorrect, actual results may vary materially from
those described in this press release as intended, planned,
anticipated, believed, estimated or expected. Unless required
by applicable securities law, DATA does not intend and does not
assume any obligation to update these forward-looking
statements.
SOURCE DATA Group Ltd.