Magor Corporation Closes Over $1.1 Million in Second Tranche of Brokered Debenture

OTTAWA, Feb. 6, 2014 /CNW/ - Magor Corporation ("Magor" or the "Company") (TSX-V: MCC), a global leader in visual collaboration solutions, is pleased to announce that it has closed the second tranche of its brokered private placement debenture offering, previously announced on October 22, 2013. The Company has raised an additional $1,137,000 through the issuance of 1,137 Units (the "Units"), for total aggregate amount of $2,337,000.

"With greater than expected demand we received for this offering, we are happy to report that we have surpassed our goal of raising $2 million," said Mike Pascoe, President and CEO of Magor Corporation. "As a direct result of this successful raise, we have significantly strengthened our cash position, allowing us to continue to expand our global presence through our sales channels, partners and the service providers whom we are currently in trials with. Operationally, we continue to receive orders from our key global customers, and due to high demand from the Middle East, we recently opened an office in Dubai. Based on our current growth in business, and as a result of this last capital raise, we are confident we have enough capital to reach the significant milestone of cash flow break even during fiscal 2015 (YE 4/30/15)."

Each Unit consists of a $1,000 par value secured debenture (the "Debentures") and 1,000 common share purchase warrants (each a "Warrant"). The Debentures shall mature four (4) years from the date of issuance, unless redeemed at 102.0% and the Warrants are exercisable at a price of $0.40 for a period of four (4) years. The Debentures shall bear interest at an annual rate of 12% of par value, payable every six (6) months in arrears in cash. On maturity, the Company intends to settle, subject to TSX Venture Exchange's acceptance, the principal for shares, at the option of the holder. The brokered private placement was led by Jacob Securities Inc. and included as part of the syndicate, Richardson GMP Limited (the "Syndicate"), and resulted in the issuance of 103,650 broker warrants to the Syndicate in connection with the second tranche closing. Total cash compensation payable to the Syndicate in connection with the second tranche closing was $11,760.

The aggregate proceeds raised under the offering will be used to accelerate the growth opportunity associated with the Company's Aerus cloud-based video collaboration solutions.

All securities issued pursuant to the Offering (and any underlying securities) will be subject to a statutory four (4) month hold period, expiring on June 7, 2014.

About Magor Corporation:
Magor enables people to engage in high-quality visual conversations while simultaneously sharing, viewing and editing relevant collaborative material on desktops, laptops, tablets, smartphone applications, whiteboards and other devices. Magor fits any workflow so that users have the freedom to work together naturally anytime, regardless of location, network or device. To find out more about Magor Corporation (TSX-V: MCC), visit our website at http://www.magorcorp.com.

Disclaimer in regards to Forward-looking Statements

Certain statements included herein constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. Except as required by law, Magor does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE: Magor Corporation

Mike Pascoe
President and CEO
Magor Corporation
613-686-1731
[email protected]

Babak Pedram
Investor Relations
Virtus Advisory Group Inc.
416-995-8651
[email protected]