Business
DATA Communications Management Corp. Completes Rights Offering for $4.6 million and Announces Private Placement of up to $3.9 million for Gross Proceeds of up to $8.5 million
DATA Communications Management Corp. Completes Rights Offering for $4.6 million and Announ...
About this update from Data Communications Management Corp.
[{"type":"text","content":"\n\n\n\nDATA Communications Management Corp. Completes Rights Offering for $4.6 million and Announces Private Placement of up to $3.9 million for Gross Proceeds of up to $8.5 million\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nBRAMPTON, ON, June 23, 2017\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\n\n\nBRAMPTON, ON, June 23, 2017 /CNW/ - DATA Communications Management Corp. (TSX: DCM) (\"DATA\" or the \"Company\") is pleased to announce that it has completed its previously announced rights offering (the \"Rights Offering\"), raising gross proceeds of $4.6 million. The Company also announced that it intends to complete a non-brokered equity private placement (the \"Private Placement\") to raise up to $3.9 million. Collectively, the gross proceeds from the Rights Offering and the Private Placement will be up to $8.5 million. \n\nRights Offering\n\nUnder the terms of the Rights Offering, each eligible securityholder was entitled to subscribe for one common share of the Company (\"Common Share\") for every two rights held upon payment of the subscription price of $1.40 per Common Share. The Company will issue 3,312,368 Common Shares or approximately 50% of the Common Shares available under the Rights Offering for gross proceeds of approximately $4.6 million.\n\nTo the knowledge of the Company, after reasonable inquiry, directors, officers, employees and other insiders of the Company exercised subscription privileges, including subscription privileges associated with additional rights acquired in the market, to acquire 1,219,179 Common Shares under the Rights Offering representing total subscription proceeds of approximately $1.7 million.  To the knowledge of the Company, after reasonable inquiry, no person that was not an insider became an insider of the Company as a result of the Rights Offering.\n\nUpon closing the Rights Offering the Company has 16,572,631 Common Shares outstanding.\n\nDATA retained Kingsdale Advisors as the information agent in connection with the Righ...