Additional capital helps secure Ackroo's plan for sustainable growth
OTTAWA, July 15, 2014 /CNW/ - Ackroo Inc. (TSXV: AKR) ("the Company"), a loyalty and rewards technology and services provider, is pleased to announce that it has closed a private placement for gross proceeds of $401,250. The Company issued 8,025,000 units to subscribers at a price of $0.05 per unit. Each unit consists of one common share and one-half of one share purchase warrant, each whole warrant entitling the holder to acquire one additional common share of the Company at a price of $0.10 per share for a period of 12 months, subject to certain acceleration provisions in the event the Company's shares trade at $0.15 or more for 10 consecutive trading days.
In connection with the Private Placement, the Company has issued 450,000 finder's warrants to finders that introduced subscribers to the Company. The finder's warrants have the same terms as the warrants forming part of the units. All securities issued in connection with the offering are subject to a hold period expiring on November 15th, 2014.
Ackroo CEO, Steve Levely commented, "This financing helps solidify our plans towards business break even and provides closure to our Q2 focus of restructuring, cost cutting and financing. We are now in an excellent position to refocus on growth with our revised organizational structure. We strongly appreciate the current and new investors that have supported us during this current financing and those that have supported us previously."
Ackroo also announces the appointment of its CEO Steve Levely to the board of directors. Mr. Levely replaces Jeff Durno who did not stand for re-election at the 2014 AGM. Jeff will continue to support Ackroo as legal counsel. The company would like to thank Jeff for all of his contributions to date as a member of the board.
In addition, Ackroo has forfeited 4,313,042 existing options at a price of $0.20 in exchange for granting the option to purchase 2,430,271 common shares of Ackroo to directors, officers, employees and consultants of the company at a price of $0.10, for a period of 10 years.
Ackroo provides gift card and loyalty solutions into the $145 billion North American gift card and loyalty market. Their solutions enable businesses, merchants and business networks to increase profitability and build long-term customer relationships through customized gift card and loyalty programs. Ackroo's web-based solutions provide the power of a massively scalable software platform in a lightweight online tool that works with existing point-of-sale equipment, making it easy and affordable for businesses to launch gift card and loyalty programs that deliver immediate return on investment. Ackroo is headquartered in Ottawa, Canada. For more information, visit: www.ackroo.com.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release contains statements that constitute forward looking statements. These statements include, among others, statements about Ackroo's intention to complete a private placement. Readers are cautioned not to place undue reliance on such forward looking statements. Such statements are based on current expectations and assumptions and involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Ackroo Inc.
SOURCE Ackroo Inc.