Digital Shelf Space Closes Off Non-Brokered Financing After First Tranche Due to Successful Q1 Performance
May 26 2011 - 8:30AM
Marketwired
Digital Shelf Space Corp. (the "Company" or "DSS") (TSX VENTURE:
DSS) is pleased to announce that further to its news release dated
May 17, 2011, in which the Company closed on a tranche of financing
(the "Offering") equal to approximately $1.2M, that the Company has
determined that it will formally close off this round of financing
due to its strong Q1 financial performance.
CEO and President of DSS Jeffrey Sharpe stated: "We are very
pleased with our Q1 performance and ultimately our current cash
position. We have assessed our near term finances and feel
confident that we are well positioned to continue to reach our
milestones over the coming months, while at the same time
mitigating against further dilution for our shareholders."
The Company has formally closed its non-brokered private
placement and issued 5,575,307 units at a price of $0.22 per unit
for gross proceeds of approximately $1.2 million dollars. Each unit
consists of one common share and one half common share purchase
warrant. Each whole purchase warrant entitles the holder to
purchase one common share of the Company at the price of $0.30 per
common share on or before the date occurring 18 months following
the closing of the Offering (the "Offering Warrants"). In the event
the Company's common shares trade above $0.45 for ten (10)
consecutive days, the Offering Warrants, if unexercised, will
expire 30 days thereafter.
The Company paid finder's fees totaling $83,076 and issued
225,282 non-transferrable share purchase warrants as finder's fees.
The non-transferrable share purchase warrants issued as finder's
fees have the same exercise price, term and acceleration provisions
as the Offering Warrants.
"We are focused on implementing our exciting and strategic
advertising campaign and growth plan for our GSP RUSHFIT brand,
along with driving our overall corporate growth plan as we work to
secure new global brand partners in the creation, production and
distribution of original content," said Jeffrey Sharpe, CEO and
President of DSS.
In accordance with applicable securities legislation, securities
issued pursuant to the Offering are subject to a hold period of
four months plus one day from the date of completion of the
Offering.
The Offering and payment of finder's fees are subject to final
regulatory approval.
Monies raised from this financing will be used toward marketing
and advertising, content development and new projects, software and
IT development, transaction and related expenses, and working
capital and general corporate purposes.
About Digital Shelf Space Corp.
Digital Shelf Space is an independent producer of home
entertainment content and online delivery technology provider to
digital retailers, content owners and aggregators. Digital Shelf
Space's proprietary technology platform has been custom built to
deliver home entertainment content directly to consumers. The
platform blends e-commerce functionality and paid DVD, digital
download and streaming video delivery. For more information please
visit www.digitalshelfspace.com and to view our recently launched
project with Georges St-Pierre, please visit
www.gsprushfit.com.
ON BEHALF OF THE BOARD
Jeffrey Sharpe, President & CEO
Forward Looking Statements
This news release contains "forward-looking information" within
the meaning of the Canadian securities laws. Forward- looking
information is generally identifiable by use of the words
"believes", "may", "plans", "will", "anticipates", "intends",
"budgets", "could", "estimates", "expects", "forecasts", "projects"
and similar expressions, and the negative of such expressions.
Forward-looking information in this news release include statements
about the Company's near term financial needs; the implementation
of a strategic advertising campaign and growth plan; securing new
global brand partners; and the creation, production and
distribution of original content.
In connection with the forward-looking information contained in
this news release, Digital Shelf Space has made numerous
assumptions, regarding, among other things, final regulatory
approval of the private placement offering and the Company's near
term financial needs. While Digital Shelf Space considers these
assumptions to be reasonable, these assumptions are inherently
subject to significant uncertainties and contingencies.
Additionally, there are known and unknown risk factors which
could cause Digital Shelf Space's actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking information contained herein. Known risk factors
include, among others: the private placement offering may not
receive final regulatory approval; the Company may not have be in a
position to continue its business plan or operations without
additional financing and shareholder dilution in the near term; the
Company may not implement a new advertising campaign or growth
plan; the Company may not secure any additional brand partners and
may not create, produce or distribute any additional content;
reliance on the health and marketability of celebrity fitness
talent in productions owned by Digital Shelf Space; actual results
from the use of celebrity fitness products may differ substantially
from anticipated results; the substantial investment of capital
required to produce and market video and entertainment productions,
limitations imposed by our financing abilities, unpredictability of
the commercial success of our programming, difficulties in
integrating technological changes and other trends affecting the
entertainment industry.
A more complete discussion of the risks and uncertainties facing
Digital Shelf Space is disclosed in Digital Shelf Space's Filing
Statement dated November 16, 2010 and continuous disclosure filings
with Canadian securities regulatory authorities at www.sedar.com.
All forward-looking information herein is qualified in its entirety
by this cautionary statement, and Digital Shelf Space disclaims any
obligation to revise or update any such forward-looking information
or to publicly announce the result of any revisions to any of the
forward-looking information contained herein to reflect future
results, events or developments, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of the release.
Contacts: Digital Shelf Space Corp. Jeff Sharpe President and
CEO 604.736-7977 604.736-7944 (FAX) jeff@digitalshelfspace.com
www.digitalshelfspace.com Investor Cubed Inc. Investor Relations
(647) 258-3311 Toll Free: (888) 258-3323 (416) 363-7977 (FAX)
info@nvestor3.ca
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