CloudBench Applications, Inc.

CloudBench Applications, Inc.

October 13, 2009 14:09 ET

CloudBench Applications Announces Non-Brokered Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 13, 2009) - CloudBench Applications, Inc. (formerly Municipal Solutions Group, Inc.) (TSX VENTURE:CBH) ("CloudBench" or the "Company") proposes to complete a non-brokered private placement financing (the "Financing") involving the issuance of up to 500,000 units (the "Units") at a price of $2.00 per Unit to raise gross proceed of up to $1,000,000. Each Unit will be comprised of one (1) Series 1 7% Convertible Retractable Preferred Share (a "Series 1 Share") and 12.5 common share purchase warrants such that up to an aggregate of 500,000 Series 1 Shares (the "Offered Shares") and 6,250,000 common share purchase warrants (the "Offered Warrants") may be issuable under the Financing.

The Series 1 Shares are to be created prior to the completion of the Financing as a series of the Company's existing Class A Preference Shares. The special rights and restrictions attached to the Series 1 Shares will include, without limitation: (a) a 7% annual dividend; (b) a conversion right pursuant to which the holders of the Series 1 Shares shall be entitled to convert each Series 1 Share into 25 common shares in the capital of the Company, subject to adjustment, for no additional consideration; and (c) a retraction right where in specified circumstances the holders of Series 1 Shares can require the Company to redeem their Series 1 Shares.

Each Offered Warrant will entitle the holder to acquire one common share in the capital of the Company at a price of $0.24 per share for a period of five years from the date of issuance.

Completion of the Financing is subject to acceptance by TSX Venture Exchange.

Contact Information

  • CloudBench Applications, Inc.
    Ian Power
    +1 (604) 729-5142