EXO U Inc.

TSX VENTURE : EXO


EXO U Inc.

March 06, 2014 15:23 ET

EXO U Announces Closing of $7 Million Bought Deal Private Placement

MONTREAL, QUEBEC--(Marketwired - March 6, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

EXO U Inc. ("EXO U" or the "Corporation") (TSX VENTURE:EXO) is pleased to announce the closing of its previously announced bought deal private placement offering of units of EXO U (the "Units") at $1.55 per Unit (the "Issue Price"). Prior to the closing of the Offering (as defined below), the syndicate of underwriters led by Mackie Research Capital Corporation and including National Bank Financial Inc. and Cormark Securities Inc. exercised their over-allotment option and purchased a total of 4,371,000 Units (the "Brokered Offering"), which together with an additional 146,000 Units sold directly by the Corporation on a non-brokered basis, resulted in a total of 4,517,000 Units being issued today for gross proceeds of $7,001,350 (collectively, with the Brokered Offering, the "Offering").

Each Unit consists of one common share of the Corporation (each, a "Common Share") and one-half (1/2) of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant entitles its holder to acquire an additional Common Share (each, a "Warrant Share") at an exercise price of $1.95 per Warrant Share for a period of 24 months following the closing of the Offering.

In consideration for their services in connection with the Brokered Offering, the underwriters received a cash commission equal to 6% of the gross proceeds of the Brokered Offering. The underwriters also received 260,316 compensation options ("Compensation Options"). Each Compensation Option is exercisable for one Unit at the Issue Price for a period of 24 months from closing of the Offering.

EXO U intends to use the net proceeds from the Offering for general corporate and working capital purposes. All securities issued in connection with the Offering are subject to a statutory hold period which expires on July 7, 2014. The Offering is subject to the final approval of the TSX Venture Exchange.

The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act), except pursuant to an exemption from the registration requirements of those laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the 1933 Act).

About EXO U

EXO U enables businesses and educational organizations to securely manage information and empower people to communicate their best ideas through application interoperability across desktop and mobile computing environments. We simplify the management of the entire application lifecycle, helping clients manage enterprise mobility and BYOD initiatives, ensure the security and privacy of information, increase productivity, and reduce the total cost of ownership for existing and future IT investments. The EXO U technology agnostic framework offers users a unified collaborative workspace with a unique, secure and attractive experience for current and future digital content and applications.

Disclaimer in Regards to Forward-Looking Statements

Certain statements made in this press release that are not historical facts are forward-looking statements and are subject to important risks, uncertainties and assumptions. The results or events predicted in these forward-looking statements may differ materially from actual results or events. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking information contained in this press release represents EXO U's current expectations. EXO U disclaims any intention and assumes no obligation to update or revise any forward-looking information, except if required by applicable securities laws.

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.

For more information please visit www.exou.com.

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