TeraGo Inc.

TeraGo Inc.

June 11, 2015 08:31 ET

TeraGo Closes $10 Million Equity Offering

TORONTO, ONTARIO--(Marketwired - June 11, 2015) -


TeraGo Inc. ("TeraGo" or the "Company") (TSX:TGO) (www.terago.ca), is pleased to announce the closing of its previously announced overnight marketed offering (the "Offering") to issue and sell 1,755,000 common shares in the capital of the Company ("Common Shares") at a price of $5.70 per share (the "Offering Price") to raise gross proceeds of $10,003,500. The Offering was carried out pursuant to an underwriting agreement with a syndicate of underwriters led by National Bank Financial Inc. and TD Securities Inc., and included Cormark Securities Inc., PI Financial Corp. and RBC Capital Markets (collectively, the "Underwriters").

The Company has granted the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase up to an additional 263,250 Common Shares, exercisable at any time up to 30 days after today's closing at a price equal to the Offering Price.

The Company intends to use the net proceeds of the Offering to fund its growth strategy, including potential strategic acquisitions; fund operational efficiency activities; invest in new product development activities, specifically in the cloud and data center segments; and to fund working capital needs.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements

This news release includes certain forward-looking statements that are made as of the date hereof. Such forward-looking statements may include, but are not limited to, statements relating to the Offering, the Over-Allotment Option and the intended use of proceeds of the Offering. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities laws. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. The forward-looking statements reflect the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including those risks set forth in the "Risk Factors" section in the final short form prospectus of the Company dated June 4, 2015 and in the "Risk Factors" section in the annual MD&A of the Company for the year ended December 31, 2014, each available on www.sedar.com under the Company's corporate profile. Readers should not place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed with the forward-looking statements. Except as may be required by applicable Canadian securities laws, TeraGo does not intend, and disclaims any obligation, to update or revise any forward-looking statements whether in words, oral or written as a result of new information, future events or otherwise.

About TeraGo

TeraGo, through its wholly owned subsidiaries TeraGo Networks Inc. and Rackforce Networks Inc., provides businesses across Canada and globally with network and voice services, data center services and cloud enterprise services including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), cloud computing and cloud storage solutions. TeraGo owns and manages its IP network servicing over 4,200 business customers in 46 major markets across Canada including Toronto, Montreal, Calgary, Edmonton, Vancouver and Winnipeg, as well as six data centers in the Greater Toronto Area, the Greater Vancouver Area and Kelowna. TeraGo Networks is a Competitive Local Exchange Carrier (CLEC) and was selected as one of Canada's Top Small and Medium Employers for 2015.

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