Mediagrif Announces C$10,000,000 Bought Deal Offering
/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR DISSEMINATION IN THE UNITED STATES/
LONGUEUIL, QC, May 4, 2020 /CNW/ - Mediagrif Interactive Technologies Inc. (TSX: MDF) ("Mediagrif" or the "Company"), is pleased to announce that it has entered into an agreement with a syndicate led by Echelon Wealth Partners Inc. ("Echelon"), to purchase, on a bought deal basis, 1,818,200 Common Shares (the "Common Shares") of the Company at a price of C$5.50 per Common Share (the "Issue Price") for gross proceeds of approximately C$10,000,000 (the "Offering").
The Company has granted the Underwriters an option (the "Underwriters' Option") to purchase up to an additional 15.0% 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 "Underwriters' Option").
The Company intends to use the net proceeds of the Offering for working capital and general corporate purposes.
The Company has agreed to grant the Underwriters a cash commission equal to 6.0% of the gross proceeds of the Offering (including the Underwriters' Option), and issue to the Underwriters broker warrants ("Broker Warrants") equal to 5.0% 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 will be completed (i) by way of a private placement exemption in all of the provinces and territories of Canada, (ii) on a private placement basis in the United States pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and (iii) outside Canada and the United States on a basis which does not require the qualification or registration of any of the Company's securities under domestic or foreign securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
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 Inc. (TSX: MDF) is a Canadian leader in information technology offering strategic sourcing and unified commerce solutions as well as B2B marketplaces. Mediagrif's solutions are used by thousands of businesses in North America and around the world. The Company has offices in Canada, the United States, Denmark, Ukraine and China. For more information, please visit us at www.mediagrif.com or call 1-877-677-9088.
SOURCE Mediagrif Interactive Technologies Inc.
Mediagrif Interactive Technologies Inc., Luc Filiatreault, President and Chief Executive Officer, Toll Free: 1-877-677-9088 ext. 2004, Email: [email protected]; Mediagrif Interactive Technologies Inc., André Leblanc, Vice President, Marketing Toll Free: 1 877 677-9088, ext. 8220, Email: [email protected]
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