Gross Proceeds of
from Private Placement and Other Commitments
/PRNewswire/ - CounterPath Corporation ("CounterPath" or the "Company") (OTCBB: CPAH) (TSX-V: CCV), an award-winning provider of desktop and mobile VoIP software products and solutions, today announced that it has raised gross proceeds of
by way of a brokered private placement (the "Offering") of units ("the Units") at a price of
per unit and entered into commitments for the early exercise of outstanding warrants providing for further proceeds of
Under the private placement, each Unit consists of one common share (each, a "Unit Share") and one-half of one common share purchase warrant (each, a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one additional common share (each, a "Warrant Share") at a price of
per Warrant Share for a period of two years from the closing of the Offering.
The Company paid broker commissions of
equal to seven percent (7%) of the funds raised in the Offering and issued 220,206 broker warrants (the "Broker Warrants") equal to seven percent (7%) of the number of Units sold in the Offering, with each Broker Warrant entitling the holder thereof to purchase one common share (each, a "Broker Share") at an exercise price of
per Broker Share until
December 14, 2012
In addition, the Company entered into warrant exercise agreements with two insiders that have agreed to exercise an aggregate of 1,666,668 warrants they acquired on
October 29, 2009
on or before
July 29, 2011
, prior to the expiry of the warrants on
October 29, 2011
. When exercised, the proceeds to the Company will be
In addition, all of the outstanding convertible debentures of the Company in the aggregate principal amount of
were converted on the closing of the Offering with a total of 1,332,261 common shares being issued to the holders. As a result of the conversion, the Company does not have any convertible debt.
The net proceeds received by CounterPath from the Offering will be used to expand sales and marketing efforts, working capital, and general corporate purposes.