Quorum Information Technologies Inc.
TSX VENTURE : QIS

Quorum Information Technologies Inc.

August 15, 2005 11:21 ET

July 2005 Warrant Conversions Net Quorum an Additional $1.882 Million

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2005) - Quorum Information Technologies Inc. (TSX VENTURE:QIS) announced today that during the month of July 2005, the Corporation issued 1,822,000 Common Shares on the exercise of 1,822,000 Share Purchase Warrants at a conversion price of $1.00 each, raising gross proceeds of $1,882,000. 53% of the funds raised were through conversions by Directors and Officers of the Corporation.

The Share Purchase Warrants were issued as part of a non-brokered Private Placement which was completed in the fall of 2003. Under the terms of the Private Placement 3,334,000 Units were issued raising $1,667,000. Each Unit in the Private Placement was comprised of one (1) Common Share and one (1) Share Purchase Warrant. Each Warrant entitled the holder to acquire one (1) Common share of the Corporation at a price of $0.75 per share if exercised on or prior to August 1, 2004, and at a price of $1.00 per share if exercised thereafter but either on or prior to August 1, 2005. With the conversion of the 1,882,000 Share Purchase Warrants in the month of July, 2005, all 3,334,000 Share Purchase Warrants were exercised before the expiry date of August 1, 2005.

"This equity injection further strengthens our balance sheet and positions us well as we continue to expand into the U.S. market," said Maury Marks, President and CEO of Quorum. "Over 15% of the funds raised through the warrant conversions came from our XSELLERATOR dealers, and their continued support is a great boost. They invest in Quorum because they know first hand the value of XSELLERATOR and see the opportunities that are available to us."

About Quorum:

Quorum (TSX V: QIS) is a successful information technology company that develops, markets, implements and supports its own software products for the automotive vertical. Its key products are DISTRIBUTOR™, a Windows and Web based network solution, and XSELLERATOR dealership management software, which combine to form a Dealership and Customer Relationship Management System (DMS) for the automotive dealership market. Quorum's success comes from delivering the best DMS System on the market, and their commitment to total customer satisfaction.



------------------------------------------------------------------------
XSELLERATOR (XS) % Mkt. XS XS % Increase
Target Market Total # Share at Dealers Dealers from
CANADA Dealers May / 05 May / 05 12/31/01 12/31/01
------------------------------------------------------------------------
GM/Saturn 793 15.38% 122 30 306%
------------------------------------------------------------------------
XSELLERATOR (XS) % Mkt. XS XS % Increase
Target Market Total # Share at Dealers Dealers from
UNITED STATES Dealers May / 05 May / 05 12/31/04 12/31/04
------------------------------------------------------------------------
GM United States 7647 .017% 13 6 116%
------------------------------------------------------------------------
Saturn United States 437 - - - -
------------------------------------------------------------------------


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Contact Information

  • Quorum Information Technologies Inc.
    Maury Marks
    President and CEO
    (403) 777-0035 Ext. 104
    (403) 777-0039 (FAX)
    Email: marksm@QuorumIS.com
    Website: www.QuorumIS.com
    or
    Quorum Information Technologies Inc.
    #200, 6715 8 Street N.E., Calgary, AB T2E 7H7