THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT
INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES.
OTTAWA, June 24, 2014 /CNW/ - Espial Group Inc. (TSX: ESP) ("Espial" or
the "Company") announced today that it has closed its
previously-announced short form prospectus offering, on a bought deal
basis, of 3,508,800 common shares (the "Common Shares") for aggregate
gross proceeds to Espial of $10,000,080 (the "Offering"). The Offering
was completed at a price of $2.85 per Common Share (the "Offering
Price") by a syndicate of underwriters led by GMP Securities L.P. and
including Beacon Securities Limited, Clarus Securities Inc., Euro
Pacific Canada Inc. and Global Maxfin Capital Inc. (collectively, the
"Underwriters").
The Company has also granted the Underwriters an over-allotment option
to purchase up to an additional 526,320 Common Shares at the Offering
Price, exercisable in whole or in part, at any time on or prior to the
date that is 30 days following the closing of the Offering. If this
option is exercised in full, an additional $1,500,012 in gross proceeds
will be raised pursuant to the Offering and the aggregate gross
proceeds of the Offering will be $11,500,092.
The Company intends to use the net proceeds from the Offering to
strengthen its balance sheet and complement funding of working capital
to fund growth, which may include financing future potential
acquisitions, as well as to replenish cash resources.
The securities being offered have not been, nor will they be, registered
under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to,
or for the account or benefit of, U.S. persons absent registration or
an applicable exemption from the registration requirements. This press
release shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any State
in which such offer, solicitation or sale would be unlawful.
About Espial (www.espial.com)
Espial is a leading supplier of digital TV and IPTV software and
solutions to cable MSOs and telecommunications operators as well as
consumer electronics manufacturers. Espial's middleware,
video-on-demand, and browser products power a diverse range of pay-TV
and Internet TV business models. Over 35 million licenses of its
patented software are in use across the world. Espial is headquartered
in Ottawa, Canada and has offices in the United States, Europe, and
Asia. Visit www.espial.com or contact via phone at +1 613 230 4770.
Forward Looking Statements
This press release contains information that is forward looking
information with respect to Espial within the meaning of Section
138.4(9) of the Ontario Securities Act (forward looking statements) and
other applicable securities laws. In some cases, forward-looking
information can be identified by the use of terms such as "may",
"will", "should", "expect", "plan", "anticipate", "believe", "intend",
"estimate", "predict", "potential", "continue" or the negative of these
terms or other similar expressions concerning matters that are not
historical facts. In particular, statements or assumptions about the
over-allotment option, the proceeds that would be realized by Espial if
the over-allotment option is exercised, the proposed use of proceeds of
the Offering, economic conditions, benefits of new customer and partner
relationships, future opportunities for the company and products and
any other statements regarding Espial's objectives (and strategies to
achieve such objectives), future expectations, beliefs, goals or
prospects are or involve forward-looking information. Forward-looking
information is based on certain factors and assumptions. While the
company considers these assumptions to be reasonable based on
information currently available to it, they may prove to be incorrect.
Forward-looking information, by its nature, necessarily involves known
and unknown risks and uncertainties. A number of factors could cause
actual results to differ materially from those in the forward-looking
statements or could cause our current objectives and strategies to
change, including but not limited to changing conditions and other
risks associated with the on-demand TV software industry and the market
segments in which Espial operates, competition, Espial's ability to
effectively develop its distribution channels and generate increased
demand for its products, economic conditions, technological change,
unanticipated changes in our costs, regulatory changes, litigation, the
emergence of new opportunities, many of which are beyond our control
and current expectation or knowledge.
Additional risks and uncertainties affecting Espial can be found in the
Short Form Prospectus dated June 17, 2014 and Management's Discussion
and Analysis of Results of Operations and Financial Condition and its
Annual Information Form for the fiscal year ended December 31, 2013
filed on SEDAR at www.sedar.com. If any of these risks or uncertainties
were to materialize, or if the factors and assumptions underlying the
forward-looking information were to prove incorrect, actual results
could vary materially from those that are expressed or implied by the
forward-looking information contained herein and our current objectives
or strategies may change. Espial assumes no obligation to update or
revise any forward looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
Readers are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date hereof.
SOURCE ESPIAL GROUP