/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Oct. 18, 2019 /CNW/ - 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 in connection with its previously announced bought
deal financing, the Company and a syndicate of underwriters led by
Cormark Securities Inc. (collectively the "Underwriters") have
agreed to increase the size of the previously announced financing.
The Company will now issue 9,195,500 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 $8.0 million
(the "Offering"). The Company and the Underwriters have also agreed
to increase the Underwriters' option (the "Option") to sell up to
an additional 15% of the Offering at the Offering Price if the
Option is exercised in its entirety, for aggregate gross proceeds
of approximately $9.2 million.
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.
SOURCE Quorum Information Technologies Inc.