BlueRush Announces Closing of Private Placement and Insider Participation
TORONTO, Nov. 05, 2018 (GLOBE NEWSWIRE) – BlueRush Inc. (“ BlueRush ” or the “ Company ”) (TSXV:BTV), a leading SaaS company providing personalized solutions for innovative financial institutions, is pleased to announce the closing of its previously announced private placement financing. “We are delighted to see the round close so quickly with such positive interest and high-quality investors,” said Dave Badun, BlueRush CFO. BlueRush raised gross proceeds of $2,000,000 through the issuance of unsecured convertible debentures (the “ Debentures ”). The Debentures accrue interest at a rate of 10% per annum and will mature on October 31, 2023.
With growing subscriptions from global Top 50 financial clients, and an expanding international network of strategic resell partners, the Company is establishing its presence in the personalized video market. “We are experiencing an increasing demand for our personalized video platform (IndiVideo) because of its ability drive measurable business results,” said Steve Taylor, CEO of the Company. “As brands realize the powerful impact of video, our IndiVideo product offers a key solution for creating data-driven video content that speaks uniquely to each viewer.”
The proceeds of the financing will be primarily used to bolster product R&D and sales and marketing activities, while supporting the general working capital purposes of the business as it continues its transition to a full SaaS model. All securities issued pursuant to the financing are subject to a four-month hold period.
The Company is pleased to announce that its largest shareholder, Round 13 Capital Founders Fund, L.P. (“Round 13”), has subscribed for $750,000 of the Debentures, accordingly the subscription was a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). Bruce Croxon is quoted as saying, “We couldn’t be more pleased with the progress the team has made and we are excited to continue to support the growth story at BlueRush.” The transaction was exempt from the formal valuation requirements of MI 61-101 as none of the securities of the Company are listed on a prescribed stock exchange. The transaction was exempt from the minority shareholder approval requirements of MI 61-101 as, at the time the transaction was agreed to, neither the fair market value of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeded 25% of the Company’s market capitalization.
In connection with the financing BlueRush paid $3,500 in finders fees and issued finders’ options entitling to purchase 33,333 common shares of BlueRush at an exercise price of $0.105 per share for a period of 24 months.
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