Mr. Paul Andreola reports
BRISIO INNOVATIONS ANNOUNCES NAMESILO ACQUISITION UPDATE AND CLOSING OF SECOND TRANCHE OF PRIVATE PLACEMENT. USD $9.0 MILLION ESCROW PAYMENTS SATISFIED FOR NAMESILO LLC ACQUISITION.
Brisio Innovations Inc. has closed the second tranche of its previously announced non-brokered private placement financing (see news releases dated March 27, 2018, and May 17, 2018) by issuing a total of 5,408,315 shares at a price of 35 Canadian cents per share for gross proceeds of $1,892,910 (Canadian).
The securities issued under the initial tranche of the financing will be subject to restrictions on resale until Nov. 10, 2018. The company issued finders 215,075 shares of the company.
The proceeds of the second tranche of the financing are being used for the company's acquisition of NameSilo LLC and working capital purposes.
NameSilo acquisition update
The company is also pleased to announce that it has now deposited a total of $9.0-million (U.S.) to an escrow agent pursuant to the terms of the share purchase agreement with NameSilo LLC.
The funds used for this escrow payment were through bridge loan financings of approximately $4.77-million (U.S.) and $5.0-million (Canadian). The loans bear interest at a rate of 8 per cent per annum and are due in June, 2019. As an incentive for the lenders entering into the loan agreements, the company agreed to issue as a bonus a total of 3.75 million common shares on Aug. 15, 2018.
Closing of the acquisition remains subject to Canadian Securities Exchange approval. The company plans to close the acquisition of NameSilo LLC in the summer of 2018.
NameSilo operational update
NameSilo is a low-cost provider of domain name registration and management services and is an ICANN-accredited (the Internet Corporation for Assigned Names and Numbers) organization. NameSilo is a high-growth registrar with over 1.75 million domains under management and over 100,000 customers from approximately 160 countries. June was a record month for the company, having registered over 110,000 new domains. According to ICANN data, which provide domain registrar industry statistics, as of March, 2018, NameSilo is the fifth fastest-growing registrar in the world based on percentage growth of new registrations and the sixth fastest-growing registrar in the world based on net new registrations, behind household names such as Google and GoDaddy, and ahead of names such as Alibaba and Tucows.
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