TrueContext Mobile Solutions Corporation

March 24, 2010 16:54 ET

TrueContext Mobile Solutions Corporation Announces 2009 Results and Terms for Proposed Private Placement

OTTAWA, ONTARIO--(Marketwire - March 24, 2010) - TrueContext Mobile Solutions Corporation (TSX VENTURE:TMN) ("TrueContext" or the "Company"), a mobile data solutions company today announced results for its year ended December 31, 2009, and terms for its proposed private placement for minimum gross proceeds of $750,000 to fund its operations, including expansion with operators. All amounts are stated in Canadian dollars unless otherwise noted.

"Only a few weeks ago on March 3, 2010, we announced that we entered into a resale agreement with AT&T Services Inc. to offer ProntoForms™ through their Small Business Mobile Application Recommender Tool (SMART) portal and we already have customers activated. These developments reinforce our views that ProntoForms™ provides a platform for operators to increase their mobile data rates per user and for their customers to increase efficiencies and reduce costs for their mobile workforce," said Alvaro Pombo, Chief Executive Officer. "In 2009 we made progress in key fronts: our revenue grew every quarter, our cost restructuring was successful, and our TSX Venture Exchange listing has given us additional access to fund growth. We believe that we are well positioned in this high growth mobility market. With our re-focus on software as a service (SaaS), our subscription base continues to grow and with partners like AT&T our opportunities are enhanced significantly. We continue to see steady progress with resellers and customer adoption of ProntoForms™ in a wide variety of business processes across multiple industries and international markets."

Operating Results for the Year Ended December 31, 2009

The following is a summary of the operating results for TrueContext for the year ended December 31, 2009:

Revenue for the year ended December 31, 2009 was $579,105 compared to $965,982 for the year ended December 31, 2008. Revenue for the fourth quarter of 2009 of $186,840 represented an increase of 25% over revenue for the 2009 third quarter of $149,439. The 2009 fourth quarter revenue consisted of approximately $136,150 of license revenue, of which $88,000 was earned through subscriptions, $6,700 earned through transaction based fees and $41,450 through a perpetual license sale. The 2009 fourth quarter subscription revenue of approximately $88,000 represents a 22% increase over the 2009 third quarter subscription revenue of $72,000 as the average subscribers per month increased from approximately 1,575 to 1,925. The 2009 fourth quarter revenue also included $50,690 of professional services and support which decreased from $70,100 in the 2009 third quarter.

The Company had a net loss of $1,107,734 for the year ended December 31, 2009 compared to a net loss of $5,038,710 for the same period in 2008. Loss from operations for the year ended December 31, 2009 decreased to $1,349,955 compared to $2,381,959 for the year ended December 31, 2008. Our license revenues generally shifted from more perpetual license sales in 2008 to more subscription based SaaS revenues in 2009. In 2009, we re-focused the Company to concentrate on SaaS and implemented cost cutting measures providing savings to more than compensate for the decreased revenues. The reduction in net loss was also affected by the elimination of the foreign exchange loss on US denominated preferred shares. The preferred shares were converted into common shares in the second quarter of 2009, so results are no longer impacted by foreign exchange gains and losses or interest expense on redeemable preferred shares.

As at December 31, 2009, the Company had cash and cash equivalents of $567,071 and working capital of $197,421 which is believed to be sufficient to fund operations through at least mid 2010 (see proposed Private Placement below).

Private Placement

The Company also announced that it has been in negotiations with potential qualifying investors with a view to completing a non-brokered private placement resulting in minimum gross proceeds of $750,000. It is currently anticipated that the proposed private placement will be completed within the next month.

It is intended that the private placement will involve the sale of units of TrueContext at $0.20 per unit. Each unit will consist of one common share and one half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder thereof to acquire one common share of TrueContext at an additional purchase price of $0.40 per share at any time up to two years from the closing date. It is currently anticipated that certain insiders of TrueContext will be participating in the private placement. TrueContext may, at its discretion, pay a finder's fee of up to 6% of the gross proceeds received from non-insider investors.

Closing of the proposed private placement is subject to certain customary conditions, including, but not limited to, the execution of definitive subscription agreements with subscribers, and the receipt of all necessary regulatory and shareholder approvals, including the approval of the TSX Venture Exchange.


TrueContext ProntoForms™ enables organizations to mobilize business processes in minutes, increasing productivity and eliminating the use of paper. Workgroups can create their own forms, capture data from the field, and then report and act on mission critical information, all in real time and in a secured and managed cloud environment. The data in the field is captured on commonly deployed mobile devices, such as Blackberry, Windows Mobile, Web browsers and iPhone devices.

ProntoForms™ is the trademark of TrueContext Corporation, a wholly-owned subsidiary of TrueContext.

Established in 2001, TrueContext is a pioneer in the creation and utilization of easy to use Mobile Data Collection applications. TrueContext's flagship product, ProntoForms™ ( simplifies field data capture and extends the most powerful business applications to nearly any mobile device. This award-winning, patent-pending technology allows non-technical customers to securely build, manage and deploy a wide variety of forms for mobile workforce management. For questions or additional information, please contact TrueContext at or at +1.877.668.6438.

Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in the Company's filings with the Canadian securities regulators, which filings are available at

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to US persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • TrueContext Mobile Solutions Corporation
    Alvaro Pombo
    Chief Executive Officer
    613.599.8288 ext. 1111