SOURCE: TaxMasters, Inc.

TaxMasters, Inc.

January 19, 2012 09:01 ET

TaxMasters, Inc. Enters Into Security Purchase Agreement With VIG Venture Fund I, LLC

HOUSTON, TX--(Marketwire - Jan 19, 2012) - TaxMasters, Inc. (PINKSHEETS: TAXS) is pleased to announce it entered into a Securities Purchase Agreement dated December 14, 2011 with VIG Venture Fund I, LLC ("Fund") for the sale of unregistered common stock and warrants. For further details about the Securities Purchase Agreement, refer to Form 8-K filed by TaxMasters on December 20, 2011. The Fund has the option to purchase up to $3 million in common stock and warrants as detailed in the Form 8-K and this press release.

"We are excited about the Securities Purchase Agreement with VIG Venture Fund I," said Patrick Cox, Founder and CEO of TaxMasters. "We believe this investment represents an indication of confidence in our abilities as a leading provider of tax compliance and repayment services to increase shareholder value on an ongoing basis."

The first tranche of this offering funded on December 14, 2011 for gross proceeds of $200,000. In this first closing, 1,818,182 shares of common stock were sold at $0.11 per share and warrants to purchase 1,818,182 shares of common stock with an exercise price of $0.12 per share were issued to the purchaser for gross proceeds of $254,503.22 paid over 24 months. The Fund has the option to purchase up to an additional $2.8M in common stock and an equal number of warrants on or before June 14, 2012, upon the same terms and conditions with share price determined by weighted average trading price of shares traded in the 10 trading days prior to each tranche closing.

About TaxMasters, Inc.

TaxMasters, Inc. (PINKSHEETS: TAXS) is the first publicly traded tax representation firm in the United States. Started by Patrick R. Cox in 2001, TaxMasters offers a full suite of compliance and repayment services to taxpayers across the country facing seemingly insurmountable tax problems and substantial federal tax debt. Tax services from TaxMasters include IRS consultations, tax return preparation, settlement analysis, and assistance with IRS automated collections, Revenue Officer involvement and collection due process.

Employing over 200 people, TaxMasters leverages the expertise of enrolled agents, attorneys, CPAs, and sales consultants to counsel and assist the US taxpayer with their specific tax problems. TaxMasters is not a law firm or a CPA firm.

For more information about TaxMasters, Inc. and its commitment to help taxpayers in the United States solve tax problems (http://www.txmstr.com/tax-problems/), please visit www.txmstr.com.

Forward-Looking Statements

Any forward-looking statements, as defined in the Securities Exchange Act of 1934, in this release (often identified by such words as "believes," "expects," "beginning," "intended," "planned") regarding future expectations, objectives, and plans for TaxMasters, Inc. are based on opinions and estimates of management at the time the statement was made. Various known and unknown factors may cause actual results to be materially different from the expected outcomes. TaxMasters, Inc. does not, as a matter of policy, update or revise forward-looking statements. Actual results may vary materially.

Contact Information

  • DeWayne Logan
    888-497-5937