TORONTO, Nov. 05, 2018 (GLOBE NEWSWIRE) — BlueRush Inc. (“BlueRush” or the “Company”) (TSXV:BTV), a leading SaaS company providing personalized solutions for innovative financial institutions, is pleased to announce the closing of its previously announced private placement financing. “We are delighted to see the round close so quickly with such positive interest and high-quality investors,” said Dave Badun, BlueRush CFO. BlueRush raised gross proceeds of $2,000,000 through the issuance of unsecured convertible debentures (the “Debentures”). The Debentures accrue interest at a rate of 10% per annum and will mature on October 31, 2023.
With growing subscriptions from global Top 50 financial clients, and an expanding international network of strategic resell partners, the Company is establishing its presence in the personalized video market. “We are experiencing an increasing demand for our personalized video platform (IndiVideo) because of its ability drive measurable business results,” said Steve Taylor, CEO of the Company. “As brands realize the powerful impact of video, our IndiVideo product offers a key solution for creating data-driven video content that speaks uniquely to each viewer.”
The proceeds of the financing will be primarily used to bolster product R&D and sales and marketing activities, while supporting the general working capital purposes of the business as it continues its transition to a full SaaS model. All securities issued pursuant to the financing are subject to a four-month hold period.
The Company is pleased to announce that its largest shareholder, Round 13 Capital Founders Fund, L.P. (“Round 13”), has subscribed for $750,000 of the Debentures, accordingly the subscription was a ‘related party transaction’ as defined under Multilateral Instrument 61-101 (“MI 61-101”). Bruce Croxon is quoted as saying, “We couldn’t be more pleased with the progress the team has made and we are excited to continue to support the growth story at BlueRush.” The transaction was exempt from the formal valuation requirements of MI 61-101 as none of the securities of the Company are listed on a prescribed stock exchange. The transaction was exempt from the minority shareholder approval requirements of MI 61-101 as, at the time the transaction was agreed to, neither the fair market value of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeded 25% of the Company’s market capitalization.
In connection with the financing BlueRush paid $3,500 in finders fees and issued finders’ options entitling to purchase 33,333 common shares of BlueRush at an exercise price of $0.105 per share for a period of 24 months.
About BlueRush Inc. and IndiVideo
BlueRush Inc. is uniquely positioned within the online video market. Video is the fastest growing online content segment, with leading analysts predicting that more than 80% of content will be consumed as video by 2021. BlueRush develops and markets a disruptive interactive and personalized video platform called IndiVideo. IndiVideo utilizes proprietary technology that allows for two unique advantages over competitors’ personalized video technologies: (1) lower cost to mass-scale personalized videos; and (2) ability to deploy behind any corporate firewall for increased security. These advantages are critical because they allow marketing departments to control their distribution costs, and because deploying behind the firewall provides increased security as well as greater connectivity to client data.
BlueRush has a particular focus on delivering measurable value to the Financial Services vertical in areas such as mortgage, loan and credit card origination, as well as supporting Pension Fund and Insurance use cases. IndiVideo is integrated with BlueRush’s SaaS-based content engagement platform, DigitalReach, which delivers improved sales conversion metrics for more than 75,000 financial advisors in some of the world’s most respected financial institutions. The combination of IndiVideo and DigitalReach is unique in the marketplace and provides BlueRush with a differentiated value proposition. For more information, please visit www.bluerush.com.
For further information please contact:
Steve Taylor, CEO
Dave Badun, CFO
Certain statements contained in this press release constitute ‘forward-looking information’ as such term is defined in applicable Canadian securities legislation. The words ‘may’, ‘would’, ‘could’, ‘should’, ‘potential’, ‘will’, ‘seek’, ‘intend’, ‘plan’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’ and similar expressions as they relate to the Company, are intended to identify forward-looking information. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company’s current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Material factors or assumptions were applied in providing forward-looking information. Many factors could cause the actual results, performance or achievements that may be expressed or implied by such forward-looking information to vary from those described herein should one or more of these risks or uncertainties materialize. These factors include, without limitation: the TSX Venture Exchange not providing final approval for one or more of the transactions contemplated herein; changes in law; the ability to implement business strategies and pursue business opportunities; state of the capital markets; the availability of funds and resources to pursue operations; a novel business model; dependence on key suppliers and local partners; competition; the outcome and cost of any litigation; as well as general economic, market and business conditions, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward -looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. The Company’s results and forward-looking information and calculations may be affected by fluctuations in exchange rates.
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 this release.