BLUERUSH Announces the Closing of Non-Brokered Private Placement

- October 20th, 2017

BLUERUSH Media Group (TSXV:BTV) has announced it has closed its previously announced non-brokered private placement of units. As quoted in the press release: The Company raised gross proceeds of $1,300,000 through the issuance of (i) 19,999,992 units at a price of $0.05 per unit, with each unit consisting of one common share of the Company … Continued

BLUERUSH Media Group (TSXV:BTV) has announced it has closed its previously announced non-brokered private placement of units.
As quoted in the press release:

The Company raised gross proceeds of $1,300,000 through the issuance of (i) 19,999,992 units at a price of $0.05 per unit, with each unit consisting of one common share of the Company and one common share purchase warrant with each warrant entitling the holder thereof to acquire one common share of the Company at an exercise price of $0.05 per share until October 19, 2019, and (ii) 4,444,441 units at a price of $0.0675 per unit, with each unit consisting of one common share of the Company and one common share purchase warrant with each warrant entitling the holder thereof to acquire one common share of the Company at an exercise price of $0.0675 per share until October 19, 2019. All securities issued pursuant to the financing are subject to a four-month hold period.
The net proceeds will be used by the Company to further accelerate the transition into a Software as a Service (SaaS) company and for working capital. Including the issuance of shares detailed in this news release, there are currently 57,037,433 common shares of the Company issued and outstanding.
Larry Lubin, CEO of the Company said, “This financing will allow us to ramp up our sales and R&D efforts as we continue on our path toward a recurring revenue model. The investors in the private placement are highly strategic and bring decades of experience in high growth technology companies. They will be a valuable asset to us going forward.”
As previously announced, Round 13 Capital Founders Fund, L.P. (“Round 13“) subscribed for $750,000 of the financing and now owns and controls, directly or indirectly, approximately 25% of the issued and outstanding common shares of the Company. In addition, for as long as Round 13 owns or control at least 3.33% of the issued and outstanding common shares of the Company, (a) Round 13 has the right to nominate one nominee to serve as a director of the Company and the Company will appoint such nominee to the board of directors of the Company upon his or her nomination by Round 13, and (b) management of the Company will nominate the nominee for election as director of the Company at each subsequent annual meeting of shareholders and the Company will use its commercially reasonable efforts (subject to fiduciary obligations) to ensure that the nominee is elected as a director of the Company. The Company anticipates the nomination by Round 13 to occur shortly.
The financing was conditionally approved by the TSX Venture Exchange (the “TSXV“) and the creation of a new “control person” was approved by shareholders by written consent of shareholders holding more than 50% of all issued and outstanding shares of the Company.

Click here to read the full press release.

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