Quorum Information Technologies Inc.
TSX VENTURE : QIS

Quorum Information Technologies Inc.

March 14, 2007 16:22 ET

Quorum Closes Private Placement

CALGARY, ALBERTA--(CCNMatthews - March 14, 2007) -

NOT FOR DISTRIBUTION IN THE U.S. OR TO U.S. NEWSWIRE SERVICES

Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum") announced today that it has closed its previously announced private placement of units ("Units"). Quorum issued 5,470,334 Units at a price of $0.75 per Unit for aggregate gross proceeds of $4,102,750.50. Each Unit was comprised of one common share (a "Common Share") and one-half of one Common Share purchase warrant (a "Warrant") of Quorum. Each whole Warrant entitles the holder thereof to acquire an additional Common Share at a price of $1.10 per share for a period of 24 months. The Common Shares, Warrants and Common Shares issuable upon exercise of the Warrants are subject to a hold period of four months from closing.

The agent for the private placement was Paradigm Capital Inc. ("Paradigm"). As partial consideration for its services under the private placement, Quorum granted Paradigm warrants entitling it to acquire an aggregate of 382,923 Units at the offering price of $0.75 per Unit at any time on or before March 14, 2009.

The net proceeds of the financing will be used to expand sales and marketing efforts for Quorum's XSELLERATOR™ software in North America.

About Quorum:

Quorum is a leader in the automotive retail technology business in North America. Quorum's focus is on developing, marketing, implementing and supporting its XSELLERATOR™ product. XSELLERATOR is a customer and dealership management software (DMS) product that automates, integrates and streamlines every process across all departments in a dealership. Quorum is the third largest supplier of DMS systems for GM dealers in Canada with 20 percent market share and is aggressively growing its market share in the U.S. Quorum is a General Motors IDMS Supplier for North America and recently, Quorum and Microsoft announced an expanded strategic relationship. Quorum is a Microsoft Gold Certified Partner and Field-Level Managed ISV in both Canada and the United States.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the units of Quorum in any jurisdiction, including the United States, or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption therefrom, nor shall there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. Such securities have not been and will not be registered under the U.S. Securities Act, 1933, as amended, and subject to certain exemptions may not be offered or sold in the United States or to U.S. persons.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

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