Business
IP Applications Corp. Announces Non-Brokered Private Placement
IP Applications Corp. Announces Non-Brokered Private Placement
About this update from Santa Rosa Resources Corp.
[{"type":"text","content":"\n\n\n\nOct. 9, 2009 (Canada NewsWire Group) -- VANCOUVER, Oct. 9 /CNW/ -- IP Applications Corp. (TSX-Venture: IPX) (\"IP Applications\" or the \"Company\") is pleased to announce a non-brokered private placement of up to two million one hundred thousand 10% convertible preferred shares (the \"Shares\") of the Company at a price of $0.12 per Share (the \"Offering\") for gross proceeds of up to $252,000. The Company expects to issue up to 1,008,000 common share purchase warrants (the \"Warrants\") in connection with the Offering, each of which will entitle Investors to acquire a common share of the Company at a price of $0.36 until August 7, 2014. Certain insiders of the Company will participate in the Offering and will do so on the same terms as the arm's length Investors.Investors will be entitled to an annual cumulative cash dividend of 10% of the issue price of the Shares, payable in cash in arrears on December 31 of each year. The Shares will be convertible at the Investors' option into common shares of the Company on a 1:1 basis. After February 07, 2011, the Company may elect to convert the Shares into common shares if: (A) the closing price of the common shares is at a price greater than $0.40 per share for a period of 30 consecutive trading days, and (B) the total trading volume over such period is greater than 20% of the common shares issued and outstanding at the beginning of such period, excluding all common shares of the Company held by Pender Growth Fund (VCC) Inc. and by Pender Financial Group Corporation. The Shares will be redeemable at the original issue price, plus accrued and unpaid dividends, on or after August 7, 2014. Investors will have a pro-rata right to participate in subsequent equity or debt financings, to maintain their percentage equity ownership of the Company.The Offering is subject to the approval of the TSX Venture Exchange. The Closing is expected to occur on or about October 21, 2009. The Shares, and any common shares issued on conversion thereof, as well as any warrant shares issued on exercise of the Warrants, will be subject to a four month hold period.IP Applications intends to use the net proceeds for working capital necessary to advance its development and marketing initiatives in respect of the rapidly expanding Software as a Service (\"SaaS\") markets.About IP ApplicationsIP Application...