TheScore, Inc. Announces Closing Of $16M Private Placement Financing
- Company to accelerate the development and marketing of its mobile sports apps
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 financing. 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."
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