/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Oct. 17, 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 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.
SOURCE Quorum Information Technologies Inc.