EmerGeo Completes First Tranche of Financing with SiS
Vancouver, B.C., – Vancouver, B.C. – December 29, 2011 – EmerGeo Solutions Worldwide Inc. (TSX-V: EMG) (“EmerGeo” or the “Company”), a leading provider of emergency management software and consulting services, today announced that it has closed the first tranche of its previously announced private placement with SAI InfoSystem (India) Ltd. The company issued 3,333,333 common shares to SiS at a price of six cents per common share for gross proceeds of $200,000. The common shares are subject to a hold period expiring April 23, 2012.
In the second tranche, subject to disinterested shareholder and exchange approval, as well as other conditions of closing, SiS will subscribe for 60 million shares at a price of six cents per common share for gross proceeds of $3.6 million. Concurrently with completion of the second tranche, SiS will complete the acquisition of 5,572,728 common shares of the company held by four shareholders, including the founders of Emergeo’s emergency management business.
Upon completion of the second tranche, SiS will become a control person of the company and will hold 85 per cent of the issued and outstanding common shares of the company on an undiluted basis and up to 80 per cent of the common shares on a fully diluted basis. The company will seek disinterested shareholder approval of the private placement at its annual and special general meeting scheduled to be held on Jan. 17, 2012.
EmerGeo develops emergency management software solutions and provides consulting services and support to government and industry around the world. EmerGeo’s Fusionpoint™ and emergency mapping applications are used to log, track and communicate critical information required by emergency and security personnel. By leveraging open web standards, EmerGeo’s software brings together data from dispatch, crisis management, mapping, camera and other third-party systems, providing a common operating picture. EmerGeo’s technology and people have been at the forefront of some of the world’s largest disasters and are proven effective in helping government and industry to mitigate against, prepare for, respond to and recover from potential or actual incidents, natural disasters, acts of terrorism, or pre-planned events.
On behalf of the Board of Directors
EMERGEO SOLUTIONS WORLDWIDE INC.
Rick MacDonald, CEO
For more information contact the Company at:
Telephone: (001) 604-681-0989
Facsimile: (001) 604-681-0079
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Disclaimer. Certain of the statements made and information contained herein may contain forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information includes, but is not limited to, information concerning the Company’s intentions with respect to the development of its business. Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies). Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of the Company, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information.
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