MXM Nation Inc. Closes $1.25M Financingadmin
Waterloo, ONTARIO – December 9, 2013 – MXM Nation Inc. ("MXM" or the "Company") is pleased to announce that in 2013 it has closed private placement financings for total gross proceeds of CAD$1,250,200 (the "Offering").
"With the MXM Nation online network, we ushered in a social sponsorship platform for motocross brands to connect with extreme sports athletes." stated Myles Bartholomew, CEO. "Now with this new funding in place, we will be taking social sponsorship to a new level through many other social networks where people are passionate about the brands they love."
The Offering consisted of an aggregate of 4,167,333 units of the Company ("Units") at a purchase price of $0.30 per Unit. Each Unit consists of one common share and one common share purchase warrant exercisable at $0.30 for a period of two years from the date of issuance.
On November 14, 2013, MXM and New International Infopet Systems Ltd. ("Infopet") entered into an agreement of purchase and sale whereby Infopet will acquire 100% of the shares of MXM (the "Transaction"). Infopet has also applied to list on the CNSX. Infopet called a shareholders’ meeting scheduled for January 8, 2014 to approve, among other things, a name change to SponsorsOne Inc. In connection with this proposed Transaction, each MXM share will be acquired by Infopet for one Infopet common share and one half of a share purchase warrant of Infopet exercisable at $0.65 for a period of one year from the date of the completion of the Transaction. The outstanding warrants and options of MXM will also be exchanged for Infopet warrants and options on a one-for-one basis. Upon completion of the Transaction, SponsorsOne Inc. will be a public company listed on the CNSX and the former MXM shareholders will hold approximately 91.61% of its outstanding shares.
The net proceeds of the Offering will be used for product development, sales and marketing, acquisition costs and general corporate purposes.
About MXM Nation:
MXM was incorporated in 2005 to build a sponsorship business model in the extreme sports market for motocross. In 2012, MXM refocused from being a trackside promotional business to a cloud-based social sponsorship marketing offering. Extreme sports brands can engage directly on a one-to-one basis with the members of this social network by offering incentives for properly promoting that brand to their network of influence.
Upon completion of the Transaction, SponsorsOne will define and drive the emergence of social sponsorship as the next evolution of engagement for brands and online enthusiasts. The MXM Nation online community will continue as a social network within SponsorsOne.
SponsorsOne is assembling the creative team, the social sponsorship platform and the affiliated social networks to empower marketers to develop long-term, high-value relationships with their consumers.
The Canadian National Stock Exchange ("CNSX") has neither approved or disapproved the contents of this press release.
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Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of MXM, including, but not limited to, the uncertainty of the Transaction proceeding, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Posted: December 9th, 2013 under ACCESSWIRE.