Quorum Information Technologies Inc.
TSX VENTURE : QIS

Quorum Information Technologies Inc.

November 15, 2006 18:26 ET

Quorum Information Technologies Announces First Close of Private Placement Raising Gross Proceeds of $1.73 Million

CALGARY, ALBERTA--(CCNMatthews - Nov. 15, 2006) - Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum" or the "Corporation") announced today that that it has issued and sold 1,237,650 Units pursuant to its previously announced non-brokered private placement for gross proceeds of $1,732,710. On September 13, 2006, the Corporation announced it will issue on a non-brokered private placement basis up to 2,145,000 units ("Units") at a price of $1.40 per Unit for gross proceeds of up to $3,003,000. Each Unit is comprised of one (1) common share ("Common Share") and one (1) common share purchase warrant ("Warrant") of the Corporation. Each Warrant entitles the holder thereof to acquire one (1) additional Common Share at a price of $2.10 per share for a period of twelve (12) months following the initial closing date of the Private Placement. Quorum may complete the sale of a second tranche of Units prior to November 30, 2006. The proceeds of the private placement will be used to further fund the development of Quorum's proprietary XSELLERATOR™ automotive Dealership Management System (DMS) software, and expansion of Quorum's business into the United States market under the recently awarded GM IDMS contract.

About Quorum:

Quorum's focus is on developing, marketing, implementing and supporting its XSELLERATOR™ product for the automotive vertical. XSELLERATOR is a dealership and customer management software product which automates, integrates and streamlines every process across departments in a dealership. Quorum currently holds more than 19 percent of GM dealership market share in Canada, making it the third largest supplier of Dealership Management Systems for GM in Canada. Quorum is one of only two General Motors' IDMS Suppliers for North America, and is the only Microsoft Gold Certified Partner and Field-Level Managed ISV in the North American automotive retail technology market.

THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY THE COMMON VOTING SHARES IN ANY JURISDICTION. SUCH SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES, OR TO A U.S. PERSON, ABSENT REGISTRATION, OR AN APPLICABLE EXEMPTION THEREFROM.

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

Contact Information

  • Quorum Information Technologies Inc.
    Craig F. Nieboer
    V.P. & CFO
    (403) 777-0035 Ext. 110
    (403) 777-0039 (FAX)
    Email: NieboerC@QuorumIS.com
    Website: www.QuorumIS.com
    or
    Quorum Information Technologies Inc.
    #200, 6715 8 Street N.E.
    Calgary, AB T2E 7H7