Ackroo adds capital to fund sales initiatives and settle on long term debt
OTTAWA, ON–(Marketwired – July 10, 2017) – Ackroo Inc. (TSX VENTURE: AKR) (OTC: AKRFF) (“Ackroo” or the “Company”), a gift card, loyalty and rewards technology and services provider, has completed its previously announced private placement of Units at a price of $0.055 per Unit. Each “Unit” consists of one common share of the Company and one share purchase warrant (each a “Warrant”) entitling the holder to purchase an additional common share of the Company at a price of $0.10 per share for a period of sixty months. The Warrants are subject to accelerated expiry in the event the closing price of the Company’s shares is $0.20 or more for thirty consecutive trading days.
In connection with completion of the placement, the Company also announces that it has reached an agreement with Orbo Récompenses Inc. (Orbo Rewards) to settle the outstanding balance of $144,000 owing to Orbo Rewards through a one-time cash payment of $129,600.
“We are excited to have this financing completed” said Steve Levely, Chief Executive Officer of Ackroo. “We were fortunate that the majority of the financing was filled by a handful of longstanding investors and in doing so we now not only have the working capital needed to continue to execute on our growth plans we were also able to settle on our long term debt with Orbo Rewards. A great win for the Company and for our shareholders.”
The private placement includes a subscription from Arjun Kolachalam, an existing shareholder of the Company, in the amount of 3,636,364 Units. As a result of his existing ownership of common shares of the Company, the issuance of Units to Mr. Kolachalam will result in him becoming an “insider” of the Company under the policies of the TSX Venture Exchange (“Exchange”). The Company cannot close the subscription from Mr. Kolachalam until approval of the Exchange is received.
Assuming approval of the Exchange is received, the private placement will have resulted in the issuance of 11,575,364 Units for gross proceeds to the Company of $636,645. No finders’ fees were paid in connection with the private placement. All securities issued in the private placement are subject to a four month and a day hold period.
Assuming the Company closes the subscription from Mr. Kolachalam, he will have ownership and control of 5,636,364 common shares of the Company, representing approximately 14.5% of the Company’s current issued and outstanding common shares, 3,636,364 Warrants and 1,000,000 common share purchase warrants exercisable at a price of $0.30 until November 17, 2018. Mr. Kolachalam would have ownership and control of 10,272,728 common shares of the Company, representing approximately 23.7% of the then issued and outstanding common shares of the Company, assuming exercise of only the warrants held by him.
Mr. Kolachalam has subscribed for the Units for investment purposes. In the future, Mr. Kolachalam may acquire or dispose of additional securities of the Company, through the market, privately or otherwise, as circumstances or market conditions may warrant. Following closing of the subscription from Mr. Kolachalam an early warning report will be filed under applicable Canadian provincial securities legislation. To obtain a copy of the report please go to the Company’s profile on SEDAR or contact Steve Levely, the Chief Executive Officer of the Company.
Ackroo provides gift card and loyalty processing solutions to help retail and hospitality merchants attract, retain and grow their customers and their revenues. Through a SaaS based business model Ackroo provides an in-store and online automated solution to help merchants process gift card & loyalty transactions at the point of sale, provide key administrative and marketing data, and to allow customers to access and manage their gift card and loyalty accounts. Ackroo also provides important marketing services to assist their merchants with utilizing Ackroo’s technology solution. 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.
Forward Looking Statements
These forecasts and forward-looking statements are not guarantees of future performance and activities and are subject to risks and uncertainties. The company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, but are not limited to: the company’s ability to raise enough capital to support the company’s go forward plans; the overall global economic environment; the impact of competition and new technologies; general market, political and economic conditions in the countries in which the company operates; projected capital expenditures and liquidity; changes in the company’s strategy; government regulations and approvals; changes in customers’ budgeting priorities; plus other factors that may arise. Any forward-looking statements in this press release are made as of the date hereof, and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
- For information, please contact:
Chief Executive Officer
Tel: 613-599-2396 x730