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CounterPath Announces Closing of $1.5 Million Private Placement Financing led by Wesley Clover (of Sir Terence Matthews fame)
Tuesday, July 25, 2017Company Profile | Follow Company
Vancouver, BC, July 25, 2017--(T-Net)--CounterPath Corporation (NASDAQ: CPAH) (TSX: PATH), a provider of over-the-top (OTT) Unified Communications solutions for enterprises and carriers, announced today the closing of a non-brokered private placement financing of 539,240 shares of common stock of the Company at a price of US$2.20 for gross proceeds of $1.5 million (US$1,186,328).
The net proceeds from the Offering will be used to (1) buildout the Company's Unified Communications-as-a-Service (UCaaS) offerings, (2) expand sales and marketing resources and (3) for general corporate purposes.
Wesley Clover International Corporation the Company's largest shareholder, KMB Trac Two Holdings Ltd. (“KMB”) and the Company's executives subscribed for an aggregate of 345,227 Shares. The Offering constituted a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”).
Wesley Clover International Corporation (“Wesley Clover”), located at 390 March Road, Suite 110, Kanata, Ontario, Canada K2K 0G7, purchased 144,357 Shares issued pursuant to the Offering for aggregate consideration of US$317,585.40 (CDN$399,998.81) in reliance on the prospectus exemption contained in section 2.10 of National Instrument 45-106 Prospectus Exemptions. Wesley Clover acquired the Shares for investment purposes.
Dr. Terence H. Matthews, with a business address of 390 March Road, Suite 110, Kanata, Ontario, Canada K2K 0G7, owns 99.9999% of the issued and outstanding voting shares of Wesley Clover.
The Shares acquired by Wesley Clover pursuant to the Offering represent 2.9% of the Shares of the Company outstanding as of July 20, 2017 before completion of the Offering.
Following the acquisition by Wesley Clover, Wesley Clover owns 1,512,850 Shares on a fully diluted basis (26.9% of the Shares outstanding), including 75,000 Shares that may be acquired upon the exercise by Wesley Clover of warrants and 56,189 Shares that may be acquired on the conversion of deferred share Shares (each, a “DSU”) of the Company (which DSU's are held directly by Dr. Matthews).
KMB, located at 3540 Morgan Creek Way, Surrey, British Columbia, Canada V3Z 0J7, purchased 180,446 Shares issued pursuant to the Offering for aggregate consideration of US$396,981.20 (CDN$499,997.82).
About CounterPath
CounterPath Unified Communications solutions are changing the face of telecommunications. An industry and user favorite, Bria softphones for desktop, tablet and mobile devices, together with Stretto Platform™ server solutions, enable operators, OEMs and enterprises large and small around the globe to offer a seamless and unified over-the-top (OTT) communications experience across both fixed and mobile networks.
The Bria and Stretto combination enables an improved user experience as an overlay to the most popular UC and IMS telephony and applications servers on the market today. Standards-based, cost-effective and reliable, CounterPath's award-winning solutions power the voice and video calling, messaging, and presence offerings of customers such as AT&T, Avaya, BroadSoft, BT, Cisco Systems, GENBAND, Metaswitch Networks, Mitel, NEC, Network Norway, Nokia, Rogers and Verizon.
Visit www.counterpath.com
David Karp
Chief Financial Officer
Email: dkarp@counterpath.com
Tel: (604) 628-9364
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CounterPath, an Alianza Company
Vancouver, BC (InfoTech)
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