theScore, Inc. Announces Closing of $16M Private Placement Financing
TORONTO, May 6, 2013
- Company to accelerate the development and marketing of its mobile sports
TORONTO, May 6, 2013 /PRNewswire/ - theScore, Inc. (TSX Venture: SCR)
("theScore" or the "Company") today confirmed the closing of its $16 million
private placement financing, allowing the company to accelerate the
development and marketing of its mobile sports apps.
theScore's mobile sports platforms have achieved significant growth since
September 2009, growing from 600,000 monthly users to more than 4.2 million in
January 2013. Available across all major mobile platforms, its flagship
applications offer real-time sports news, scores, fantasy information and
alerts, alongside compelling and relevant content.
John Levy, Chairman and CEO of theScore, Inc. said: "This financing allows us
to ramp-up the development of some exciting new features for our mobile sports
platforms, providing sports fans with an even more immersive experience while
accelerating user growth across the United States."
The financing is a non-brokered private placement of 100,000,000 Class A
Subordinate Voting Shares (Class A Shares) at a price of $0.16, raising gross
proceeds of $16,000,000. Relay Ventures, a venture capital fund based in
Toronto and Silicon Valley and focused exclusively on the mobile sector, lead
the private placement purchasing 35,937,500 Class A Shares, representing
approximately 18.4% of the outstanding Class A Shares. Existing shareholders,
including Levfam Holdings Ltd. and Rogers Media Inc., also participated in the
In conjunction with this investment, a nomination rights agreement and
pre-emptive rights agreement have been executed which provides Relay Ventures
the right to nominate one director (representing the holders of Class A
Shares) to the Company's board of directors and the right to maintain a
pro-rata share position in future equity offerings. In accordance with the
nomination rights agreement, Relay Ventures' Co-Founder and Managing Partner
John Albright was appointed to the Company's board of directors. Mr. Albright
is replacing Ken Read, whose resignation was accepted by the Board.
Mr. Levy added: "We're delighted to welcome John to theScore's Board of
Directors. His experience in the mobile sector will be invaluable. I also want
to thank Ken for more than a decade of dedicated service and wish him the very
best for the future."
There are no bonuses, finder's fees, commissions or other compensation to be
paid in connection with the private placement. The Class A Shares issued upon
completion of the private placement will be subject to a hold period under
applicable securities laws, expiring September 4, 2013.
Canaccord Genuity Corp. provided theScore with strategic financial advice in
connection with the private placement.
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
No securities regulatory authority has either approved or disapproved the
contents of this news release. The securities being offered have not been, and
will not be, registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws, and may not
be offered or sold in the United States, or to, or for the account or benefit
of, a "U.S. person" (as defined in Regulation S of the U.S. Securities Act)
unless pursuant to an exemption therefrom. This press release is for
information purposes only and does not constitute an offer to sell or a
solicitation of an offer to buy any securities of the Company in any
About theScore Inc.
theScore's mission is to provide a full digital service to sports fans,
delivering a personalized user experience across all major mobile platforms
through our mobile apps and website. Users are provided with a comprehensive,
customizable service that dispenses real-time sports news, scores, fantasy
information and alerts, alongside compelling, relevant content that allows for
seamless social sharing by users. theScore also enables advertisers to engage
with users across theScore's mobile and web platforms and offers them a
combination of reach, relevance, and customizable advertising and sponsorship
Forward-looking (safe harbour) statement
Statements made in this news release that relate to future plans, events or
performances are forward-looking statements. Any statement containing words
such as "may", "would", "could", "will", "believes", "plans", "anticipates",
"estimates", "expects" or "intends" and other similar statements which are not
historical facts contained in this release are forward-looking, and these
statements involve risks and uncertainties and are based on current
expectations. Such statements reflect theScore's current views with respect to
future events and are subject to certain risks, uncertainties and assumptions.
Many factors could cause the Company's actual results, performance or
achievements to be materially different from any future results, performance
or achievements that may be expressed or implied by such forward looking
statements, including among other things, those which are discussed under the
heading "Risk Factors" in the Company's Listing Application as filed with the
TSX Venture Exchange and available on SEDAR at www.sedar.com and elsewhere in
documents that theScore files from time to time with securities regulatory
authorities. Should one or more of these risks or uncertainties materialize,
or should assumptions underlying the forward-looking statements prove
incorrect, actual results could differ materially from the expectations
expressed in these forward-looking statements. The Company does not intend,
and does not assume any obligation, to update these forward-looking statements
except as required by applicable law or regulatory requirements.
SOURCE theScore, Inc.
Chief Financial Officer
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