Business
VitalHub Announces Closing of Strategic Private Placement with Industry Leaders
Toronto, Ontario--(Newsfile Corp. - January 18, 2019) - VitalHub Corp. (TSXV: VHI) (the "Compa...
About this update from Vitalhub Corp.
[{"type":"text","content":"VitalHub Announces Closing of Strategic Private Placement with Industry LeadersToronto, Ontario--(Newsfile Corp. - January 18, 2019) - VitalHub Corp. (TSXV: VHI) (the \"Company\") is pleased to announce that it has completed a non-brokered private placement (the \"Offering\") of units (\"Units\") with the former founders and management team of Aastra Technologies Limited (the \"Investors\"). The Offering was completed at a price $0.16 per Unit for gross proceeds of $3.3 million and a total of 20,625,000 Units issued.The Investors are comprised of Aastra Technologies Limited (\"Aastra\") founder, former Chairman and co-CEO Francis Shen; Aastra former President, co-CEO and COO Tony Shen; former Aastra CFO and current CFO of The Descartes Systems Group Inc., Allan Brett; and former Aastra General Counsel and current VP - M&A and General Counsel of Sangoma Technologies Corp., John Tobia. Francis Shen and Tony Shen invested by way of holding companies, Connection 25 Inc. and TMWE Inc., respectively (together, the \"Principal Investors\").Aastra was established in 1983 by Francis Shen and a partner, and was joined by Francis's brother Tony Shen in the late 1980's. Aastra initially serviced the aerospace and defense market, and quickly transitioned in the early 1990s to the rapidly growing telecom industry. Together, the Shen brothers quickly expanded Aastra through new product innovation, and later successfully employed an aggressive M&A consolidation strategy and global market expansion. They quickly grew the company to over 2,000 employees and more than $700 million in annual revenue. Aastra was listed on the Toronto Stock Exchange from 2000 until 2014, when it was acquired by Mitel Networks Corporation in a transaction that returned over $500 million to its shareholders. In addition, in prior years, Aastra returned over $200 million in dividends and stock buybacks.Francis Shen will be joining the Company's Board of Directors (\"Board\"), and Tony Shen will serve as a Board Observer. The Company will also constitute a new committee of the Board to consider M&A strategy and initiatives, which Francis Shen will be chairing (the \"M&A Committee\"). The M&A committee will work with a non-Board advisory group that will include the Investors, VitalHub CEO Dan Matlow, and VitalHub CFO Brian Goffenberg. The Company has a...