DealNet Capital Corp.

DealNet Capital Corp.

July 30, 2015 09:03 ET

DealNet Capital Announces Private Placement

TORONTO, ONTARIO--(Marketwired - July 30, 2015) - DealNet Capital Corp. ("DealNet" or the "Company") (TSX VENTURE:DLS) is pleased to announce that it is proposing to complete a best efforts private placement with a syndicate of agents led by Paradigm Capital Inc. ("Paradigm") (together the "Agents").

Under the terms of the agreement, DealNet will complete a private placement (the "Offering") of up to 30,000,000 units (each, a "Unit") at a price of $0.40 per Unit (the "Offering Price"), for aggregate gross proceeds of up to $12,000,000. Each Unit will consist of one common share of the Company (the "Common Shares") and one-half of one common share purchase warrant (each a "Warrant"). Each Whole Warrant will entitle the holder thereof to purchase one Common Share of the Company at an exercise price of $0.50 for 18 months following the closing date of the Offering. The Company has also granted the Agents an option (the "Over-Allotment Option") to increase the size of the offering by up to 15% of the base Offering at the Offering Price, which Over-Allotment Option shall be exercisable, by notice in writing to the Company, until the 30th day following the closing date. The Over-Allotment Option could result in the issuance of up to an additional 4,500,000 Units at the Offering Price.

The net proceeds from the Offering will be used for underwriting equity reserves for the funding of Heating Ventilation and Air Conditioning ("HVAC") leases and financing contracts, and for working capital and general corporate purposes.

Closing of the Offering is anticipated to occur on or before August 18, 2015. The Offering is subject to certain conditions typical for a transaction of this nature including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange.

As consideration for the services of the Agents in connection with the Offering, the Agents will receive a cash commission equal to 6% of the aggregate gross proceeds of the Offering and compensation warrants, exercisable at any time for a period of 18 months following the closing of the Offering, to purchase Units for an amount equal to 6% of the total number of Units issued pursuant to the Offering, at an exercise price of $0.50.

Forward Looking Statements

This press release contains forward-looking statements. More particularly, this press release refers to a proposed equity offering. The forward-looking statements are based on certain expectations and assumptions made by the Company. Although the Company believes that those expectations and assumptions are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those anticipated due to a number of factors and risks. In addition to other risks, the equity offering could fail to close. The forward-looking statements contained in this press release are made as of the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.

About DealNet Capital Corp.

DealNet Capital Corp. focuses on two key vertical markets, Consumer Engagement and Consumer Finance. Through acquisitions, the Company has become a leader in the Consumer Engagement space helping their corporate customers 'speak' to their consumers the way they want to be spoken to using live Voice, Chat, Text, Email and Proximity based engagement solutions. The Company has leveraged its engagement business to offer home improvement financing solutions to consumers, which offer attractive yields and low default rates. The Company continues to seek acquisitions in these key markets.

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

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