CALGARY, ALBERTA–(Marketwired – Dec. 11, 2015) –
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES.
Quorum Information Technologies Inc. (TSX VENTURE:QIS) (“Quorum”) is pleased to announce that it has closed the initial tranche of a non-brokered private placement and issued 8,283,586 common shares (“Common Shares”) of Quorum at a price of $0.35 per share for aggregate gross proceeds of $2,899,255 million, which includes an aggregate of 197,000 Common Shares purchased by certain directors and officers and other insiders of Quorum. Quorum anticipates it may issue up to an additional 716,414 Common Shares for additional gross proceeds of up to $250,745 on the closing of one or more additional tranches.
Quorum intends to use the proceeds of the private placement to help accelerate growth and for general corporate purposes, including:
- Growing the available market for its products by accelerating integration work with vehicle manufacturers, including GM, Chrysler, Ford, Nissan, and others in both Canada and the US. Currently Quorum has capacity to add one original equipment manufacturer (OEM) per year and plans to triple that capacity by 2017. Further OEM integration enhances Quorum's ability to market and sell to more dealerships and to larger dealer groups
- Growing Quorum's marketing, sales and implementation capacity. Based on current market demand, Quorum spent 2015 investing to increase our implementation capacity for 2016. However, with a growing available market and future larger dealer group deals, Quorum is forecasting increased sales demand that will drive a need to grow our implementation capacity beyond our planned 2016 levels.
The Common Shares issued pursuant to the initial tranche of the private placement are subject to a four month statutory hold period expiring April 11th, 2016.
Quorum is also pleased to announce the appointment of Joseph L. Campbell to its board of directors. Mr. Campbell is the President and CEO of the Tricor Automotive Group Inc., which is Canada's largest automotive dealer owned financial services company with over 170 dealerships that represent all OEM's across Canada. Mr. Campbell is a University of Michigan Business School graduate with a major in Accounting and Finance. He started his automotive related career with Pat Ryan Associates, a division of AON, and after 17 years with Pat Ryan joined Tricor as President upon its formation in 1998.
Maury Marks, Quorum's President and CEO stated, “We are excited about the appointment of Joe Campbell to our board of directors. We believe his experience, industry knowledge and connection to the Tricor network of dealerships provides Quorum an invaluable resource to help us continue our efforts to accelerate the profitable growth of our business.”
The Common Shares have not been registered under the United States Securities Act of 1933 (the “Act”), as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.
Forward-Looking Statement Disclaimer
Certain statements contained in this document constitute forward-looking statements or information (collectively “forward-looking statements”) within the meaning of the “safe harbour” provisions of applicable securities legislation. Forward-looking statements are typically identified by words such as “expect”, “intend”, “may”, “will”, “believe”, “potential” and similar words suggesting future events or future performance. In particular, this document contains forward-looking statements pertaining to the proposed use of proceeds of the private placement. Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. The intended use of the proceeds of the private placement by Quorum might change if the board of directors of Quorum determines that it would be in the best interests of Quorum to deploy the proceeds for some other purpose. The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Quorum is a North American company focused on developing, marketing, implementing and supporting its XSELLERATOR product for GM, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper franchised dealership customers as well as other franchised, independent and some non-automotive dealerships. XSELLERATOR is a dealership and customer management software product that automates, integrates and streamlines every process across departments in a dealership. One of the select North American suppliers under General Motors' DTAP program, Quorum is also one of largest DMS provider for GM's Canadian dealerships with 25% of the market. Quorum is a Microsoft Partner in both Canada and the United States. Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS. For additional information please go to www.QuorumDMS.com.
Neither the 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.
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