Quorum Information Technologies Inc.
TSX VENTURE : QIS

Quorum Information Technologies Inc.

January 13, 2006 14:12 ET

Quorum Information Technologies Announces Private Placement to Raise Gross Proceeds of $4.1 million

CALGARY, ALBERTA--(CCNMatthews - Jan. 13, 2006) - Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum" or the "Corporation") announced today that it will issue on a non-brokered private placement basis up to 2,000,000 units ("Units") at a price of $2.05 per Unit for gross proceeds of up to $4,100,000. Each Unit will be comprised of one (1) common share ("Common Share") and one (1) common share purchase warrant ("Warrant") of the Corporation. Each Warrant will entitle the holder thereof to acquire one (1) additional Common Share at a price of $2.50 per share. The Warrants will expire eighteen (18) months following the initial closing date of the Private Placement. 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. The private placement is expected to close January 20, 2006.

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 department in a dealership. Quorum currently has over 17 % of the GM dealership market in Canada making it the third largest supplier of Dealership Management Systems for GM in Canada.

Quorum was also recently named General Motors' IDMS Supplier for North America.



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XSELLERATOR (XS) Total # XS Dealers % Market Share
Target Market Dealers Dec / 05 At Dec / 05
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GM Canada 793 136 17.15%
GM USA 7647 19 0.24%
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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
    Tel: (403) 777-0035 Ext. 110
    (403) 777-0039 (FAX)
    Email: NieboerC@QuorumIS.com
    or
    Quorum Information Technologies Inc.
    #200, 6715 8 Street N.E.
    Calgary, AB T2E 7H7
    Website: www.QuorumIS.com