Quorum has closed on the initial tranche of a non-brokered private placement to help increase the DMS provider’s ability to market and sell to more dealerships and larger groups.
The company has issued 8,283,586 common shares at a price of $0.35 per share for aggregate gross proceeds of $2,899,255-million, including an aggregate of 197,000 common shares purchased by Quorum directors and insiders.
Quorum added it may also issue up to an additional 716,414 common shares for additional gross proceeds of up to $250,745 on the closing of one or more tranches. The common shares pursuant to the initial tranche of the private placement are subject to a four month statutory hold period expiring April 11, 2016, said the company.
The company said the proceeds of the private placement are intended to help increase its capacity to integrate its software with more OEMs, and in turn enhance the company’s ability to sell to more dealerships and larger groups.
A growing available market and future larger dealer groups may increase sales demand beyond what Quorum had anticipated for 2016, driving a need to grow its capacity.
The company has also appointed Joseph L. Campbell to its board of directors. Campbell is the President and CEO of Tricor Automotive Group Inc., a Canadian automotive dealer-owned financial services company.
“We are excited about the appointment of Joe Campbell to our board of directors. We believe his experience, industry knowledge and connection to the Tricor network of dealerships provides Quorum an invaluable resource to help us continue our efforts to accelerate the profitable growth of our business,” said Maury Marks, President and CEO of Quorum, in a written release.
