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