Mr. Luc Filiatreault reports
MEDIAGRIF ANNOUNCES C$10,000,000 BOUGHT DEAL OFFERING
Mediagrif Interactive Technologies Inc. has entered into an agreement with a syndicate led by Echelon Wealth Partners Inc. to purchase, on a bought deal basis, 1,818,200 common shares of the company at a price of $5.50 per common share for gross proceeds of approximately $10-million.
The company has granted the underwriters an option to purchase up to an additional 15.0 per cent of the common shares sold under the offering, at the issue price. The underwriters' option may be exercised in whole or in part to purchase common shares upon written notice to the company at any time up to 48 hours prior to the closing date of the offering.
The company intends to use the net proceeds of the offering for working capital and general corporate purposes.
"As we move forward with the execution of our strategic plan, this placement will allow us to accelerate and grow our market footprint, especially in the U.S.," said Luc Filiatreault, president and chief executive officer of Mediagrif. "With the growing demand for our e-commerce and strategic sourcing solutions, the timing could not be better and positions the company favourably for future growth. Recent events have highlighted how important it is for businesses to digitalize their commercial ecosystems and our solutions are perfectly suited to answer this critical need."
The company has agreed to grant the underwriters a cash commission equal to 6.0 per cent of the gross proceeds of the offering (including the underwriters' option) and issue to the underwriters broker warrants equal to 5.0 per cent of the number of common shares sold in the offering (including the underwriters' option), which shall be payable on the closing date of the offering.
The offering is expected to close on or about May 21, 2020, or such other date as the company and Echelon may agree, and is subject to customary closing conditions, including the approval of the securities regulatory authorities and the Toronto Stock Exchange.
About Mediagrif Interactive Technologies Inc.
Mediagrif Interactive Technologies is a Canadian leader in information technology offering strategic sourcing and unified commerce solutions as well as business-to-business marketplaces.
© 2020 Canjex Publishing Ltd. All rights reserved.