Strengthens Balance Sheet, Positions Company for Accelerated Growth
March 13, 2013
/PRNewswire/ -- ARI Network Services, Inc. (OTCBB:ARIS), a leader in creating, marketing, and supporting SaaS and DaaS solutions that connect consumers, dealers, distributors, and manufacturers in selected vertical markets, announced today that it has entered into definitive agreements with various accredited investors in a private placement of
of its common stock at a purchase price of
per share. In addition, the Company will issue to the investors warrants to purchase 1,066,667 shares of common stock at a price of
per share. The warrants are exercisable for five years.
New institutional investors accounted for the majority of the financing and existing investors made up the remainder. The signing of the agreements occurred on
Tuesday, March 12, 2013
. Final closing of the shares is expected to occur on or before
Monday, March 18, 2013
Ascendiant Capital Markets, LLC served as the exclusive placement agent for the transaction.
"We are very pleased to announce this significant financing transaction, the proceeds from which will be used to pay down debt incurred to finance our recent acquisitions," said
Roy W. Olivier
, President and CEO of ARI. "This event will significantly enhance our balance sheet, and with the integration of our two most recent acquisitions underway, we are now well positioned to further advance our competitive standing in the marketplace and take advantage of strategic opportunities."
The securities offered in this private placement have not been registered under the Securities Act of 1933, as amended, or applicable state securities laws. Accordingly, the securities may not be offered or sold in
the United States
except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act of 1933 and such applicable state securities laws. The securities were offered only to accredited investors.
No Offer or Solicitation
This press release shall not constitute an offer to sell nor a solicitation of an offer to buy any of these securities, nor shall there be any offer, solicitation or sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.