Yangaroo announced Friday that it has completed, with the conditional approval of the TSX Venture Exchange, the private placement of 2,126.5 Units at $1,000 per Unit for gross proceeds of $2,126,500. The digital distribution company had earlier anticipated placing up to 1,500 Units for gross proceeds of $1.5m; however investor demand led the company to increase the size of the offering.
Each Unit consists of 20,000 common shares and 10,000 Warrants. The Warrants are exercisable until January 31, 2012, with each whole Warrant entitling the holder to purchase one common share at $0.10. Insiders of the company purchased 120 Units, of which Scott Wambolt, CEO of Yangaroo, acquired 100 Units under his subscription in July. Ingalls & Snyder LLC purchased 1,000 Units and upon closing will own 17% of the issued and outstanding common shares and accordingly be an insider.
Fraser Mackenzie Limited acted as a Finder for 1,475 Units and was paid a fee of $102,750 and issued non-transferable warrants to acquire 2,055,000 common shares at $0.10 per share until August 27, 2012. The Company will be making certain filings to satisfy the acceptance requirements of the TSX Venture Exchange. The proceeds of the offering will be used for expansion of marketing and sales and other general working capital purposes.
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 registration requirements.
The announcement comes on the heels of a number of announcements by the Toront firm, including the hiring of CEO Scott Humbolt, the addition of Karen Dealy as president of the U.S. advertising division and a cash crunch following 2nd quarter results announced earlier in the day before the new capital investment was announced.
“The confidence that both U.S. and Canadian investors have shown in our company is very encouraging,” said Yangaroo’s newly installed CEO, Scott Wambolt. “The proceeds will enable us to continue the rollout of our sector-leading DMDS 5.0 to the music video, award show and television advertising markets in the U.S., Canada and beyond.”
