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Quisitive Technology Solutions Inc., a premier Microsoft Cloud Services and Payments Solutions Provider, is pleased to announce that it has entered into a binding agreement with FAX Capital Corp. pursuant to which FAX has agreed to purchase, on a non-brokered private placement basis, 16,000,000 common shares of Quisitive (“Common Shares”) from treasury at a price of $1.25 per Common Share for gross proceeds of $20,000,000 (the “Private Placement”).
The Private Placement is expected to close in mid-March and remains subject to the execution of final documentation and the approval of the TSX Venture Exchange. The Company intends to use the net proceeds of the Private Placement for strategic acquisition opportunities and for general corporate purposes.
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“This cornerstone investment from FAX will fortify our balance sheet and give Quisitive the flexibility and bandwidth to accelerate our growth, execute strategic acquisitions and bring our LedgerPay payments solution to market,” said Quisitive CEO, Mike Reinhart. “With the recent developments of the LOI with a bank sponsor, the engagement of key payments industry executives, and the accomplishment of achieving ‘Microsoft Co-sell Ready Status,’ we are making major strides to commercialize LedgerPay at scale. FAX’s investment in Quisitive is a strong endorsement of the potential of our innovative LedgerPay payments platform and Microsoft Cloud Services capability, and we look forward to benefiting from the strategic insights and support from FAX.”
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“We are pleased to support Quisitive in its pursuit of new and exciting growth opportunities which make this a compelling investment for FAX,” said Blair Driscoll, CEO of FAX. “This private placement is consistent with our strategy to provide patient, flexible and long-term capital to leading companies where we can meaningfully contribute and support their ongoing growth and development as a value-add partner.”
Upon closing of the Private Placement, FAX will hold approximately 7.6 per cent of the total issued and outstanding Common Shares. Quisitive has agreed, subject to certain conditions, to provide FAX the right to nominate one member to the board of directors of the Company, a pre-emptive right to participate in future offerings of securities of the Company, and registration rights with respect to its Common Shares. FAX has agreed to a lock-up for a period of 12 months and will receive a capital commitment fee payment from the Company equal to 3.5 per cent of the aggregate subscription amount.
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