ProntoForms raises $3 million through private placement financing

Ottawa-based ProntoForms announced this week it had raised $3 million through private placement financing from a series of underwriters as well as certain “insiders of the company.”

“We have a track record of achieving strong customer and revenue acquisition results with the investments that we have made. This additional capital will strengthen our balance sheet and allow us to continue our momentum," CEO Alvaro Pombo said in a statement.

The syndicate of underwriters, which is led by Beacon Securities and also includes Global Maxfin Capital, has agreed to purchase 7.5 million units of the company at 30 cents per unit on a bought deal private placement basis worth $2.25 million.

The company insiders have agreed to complete a non-brokered private placement of 2.5 million units worth $750,000.

Each unit is comprised of one common ProntoForms share and half a common ProntoForms share purchase warrant. Each whole warrant entitles the holder to purchase a share at 45 cents per share for a period of 18 months.

ProntoForms (TSX.V:PFM) has also granted the underwriters the opportunity to acquire another 1.5 million units up to 48 hours before the closing date.

ProntoForms said it plans to use the net proceeds for “working capital and general corporate purposes.”