EXO U Inc.
TSX VENTURE : EXO

EXO U Inc.

June 17, 2014 17:42 ET

EXO U Announces Exercise of Common Share Purchase Warrants by Investors and Hypertech-Ciara Inc.

MONTREAL, QUEBEC--(Marketwired - June 17, 2014) -

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EXO U Inc. ("EXO U" or the "Corporation") (TSX VENTURE:EXO), announced today that a portion of the common share purchase warrants ("Warrants") that were issued to certain investors on June 13, 2013 have been exercised to acquire 2,948,258 common shares of the Corporation ("Common Shares"), consisting of 585,067 agent warrants and 2,363,191 investor warrants at a price per Common Share of $0.80 and $1.20, respectively, for aggregate proceeds to the Corporation of approximately $3,303,882.80.

The Corporation will use the proceeds received upon the exercise of the Warrants to expand its operations and for general business purposes.

In particular, Hypertech-Ciara Inc. ("Hypertech") has exercised its Warrants to acquire 333,341 Common Shares. Following the issuance of the Common Shares to Hypertech, it will hold 12,220,841 Common Shares, representing approximately 29.5% of the issued and outstanding Common Shares.

Hypertech has acquired the Common Shares for investment purposes and may, in the future, acquire or dispose of the Common Shares through the market, private or otherwise as circumstances or market conditions warrant.

A copy of the early warning report filed with the applicable securities regulators regarding the issuance of Common Shares set out above will be available within the applicable time and will be available under the Corporation's profile on SEDAR at www.sedar.com.

This transaction is a "related party transaction" for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Corporation is relying on an exemption from the minority approval and formal valuation requirements of MI 61-101 due to the fact that the value of the transaction does not represent greater than 25% of the market capitalization of the Company.

EXO U has not filed a material change report 21 days prior to the issuance of the Common Shares set out above as no agreement to that effect was in place at that time.

Change of Auditor

EXO U also announced today that it has changed its auditor from RSM Richter LLP (the "Former Auditor") to Ernst & Young (the "Successor Auditor"). The change in auditor has been approved by the Corporation's board of directors and its audit committee.

There were no reservations in the Former Auditor's reports in connection with the two most recently-completed fiscal years or for any period subsequent to the most recently-completed period for which an audit report was issued and preceding the effective date of appointment of the Successor Auditor. There are no reportable events between EXO U and the Former Auditor as defined in National Instrument 51-102.

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.

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