IDC Completes Private Placement, Installs New Leadership Team
Ottawa, Canada, July 6, 2015--International Datacasting Corporation (IDC) (TSX:IDC),announced today that it has completed a $0.9 million private placement, streamlined the leadership team and made some changes to its Board of Directors.
IDC has successfully completed a non-brokered private placement of $906,000 aggregate principal amount of secured note. A group of senior executives has agreed to fund 40% of the Notes, with the remaining 60% provided by subscribers who are not insiders.
The Notes mature on November 4, 2015 and bear simple interest at a rate of 10% per annum, payable upon the Maturity Date. Each Note is secured by a security interest on the assets of IDC by way of a general security agreement, and ranks pari passu with all other Notes.
Subscribers of the Notes received 18,165 common share purchase warrants per $1,000 principal amount of Notes. Each Warrant entitles the holder to purchase one common share of IDC, at any time, up to and including the Maturity Date, at a price of $0.055 per Common Share, subject to customary anti-dilution adjustments. The Warrants expire on the Maturity Date.
The proceeds from the Private Placement will be used for general working capital purposes.
This Private Placement provides interim financial support as part of a revised business plan for IDC which includes a leaner organizational structure, and focusing on leveraging market potential for IDC's LASER product line. Prior to the closing of the Private Placement, the amounts owing under the promissory note issued to Pico Digital Inc. were repaid.
New Leadership Team
The Board has promoted Chris Barrett and Steeve Huin as Co-CEOs of IDC. Mr. Barrett was formerly the Vice President of Engineering and Operations and Mr. Huin was the Vice President of Products and Services. Both have been on the leadership team during the past two years and made significant contributions to the new LASER MPS product line.
Additionally, Steven Archambault (currently CFO of IDC) was promoted to Executive Vice President and CFO. In addition to his current responsibilities, Mr. Archambault will be responsible for investor/shareholder relations and human resources going forward.
As a result of the three promotions, IDC has streamlined the leadership team to the Co-CEOs and the CFO. This leaner executive structure will reduce cost and enable a more agile execution of IDC's new business plan for sustainable growth and profitability. Following the Board's approval, the leadership team is in the process of implementing a plan that is expected to result in breakeven results at a much lower revenue base, according to the company
Changes to the Board
The Board of Directors also announced that it has appointed Steven Archambault, as a non-independent director and Glenn McDougall as an independent director. Archambault and McDougall fill the vacancies left on the Board as a result of the previously announced resignation of David Charron and the resignation of Doug Lowther effective July 2, 2015. Lowther has also resigned as CEO and President of the company and will be available to assist the Board and management team as required with the transition.
Since 2001, Glenn McDougall has been Managing Partner with Doyletech Corporation, an Ottawa based management consulting firm focused on public and private technology-based organizations across Canada. He is also the President of Green Avenue Ventures Inc., a firm that invests in early-stage technology companies. Mr. McDougall is also a founding partner in Class 5 Holdings Limited, a private equity company that uses leveraged buyouts to facilitate small businesses ownership succession. During his career Mr. McDougall has participated on numerous Economic Development Committees and New Venture Advisory Boards. Mr. McDougall participated in the Private Placement.
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