TORONTO, ONTARIO — (Marketwired) — 04/08/15 — (“DealNet” or the “Company”) (CSE: DLS) is pleased to provide the following business update and organizational changes.
The Company operates under two main divisions, consisting of Consumer Engagement and Consumer Financing. The Consumer Engagement division consists of two wholly owned subsidiaries, OC Communications Group Inc. (“OCCGI”) and Impact Mobile Inc. (“Impact Mobile”). This division helps corporate clients –speak– to their customers the way customers want to be spoken to, utilizing a range of technologies including live voice, chat, text, email and proximity based engagement solutions. By moving live call engagements to other platforms, including mobile messaging engagements, the Company is able to reduce operating costs for its corporate clients, increase consumer satisfaction and drive higher margins from each customer engagement. The Consumer Engagement division has operations in both Canada and the United States.
The Consumer Financing division operates through a wholly owned subsidiary, One Dealer Financial Services Inc. (“ODFSI”). The Company has leveraged OCCGI–s Consumer Engagement business to offer home improvement financing solutions to consumers, which offer attractive yields supported by low default rates.
Over the last several months, Management has undertaken a number of initiatives to:
The Company is pleased to report progress in all areas.
Conversion of Convertible Debentures
On December 16, 2014, the Company announced an incentive plan in an effort to entice holders of the Company–s 12% convertible debentures maturing in December 2015 to convert their debentures on or before December 31, 2014. Of the $2,415,000 convertible debentures outstanding prior to the announcement of the incentive plan, $2,140,000 (or 89% of the outstanding debt) was converted. This conversion improves the Company–s financial position and eliminates cash interest expenses of approximately $250,000 in the 2015 fiscal year.
Closing of Non-Brokered Private Placement
As announced on November 25, 2014, the Company embarked on a non-brokered private placement to raise up to $5 million in new equity through cash and the settlement of existing debts of the Company. On February 11, 2015 and March 13, 2015, the Company closed the first and second tranches of this offering. To date, the Company has issued $3.1 million of equity, consisting of gross cash proceeds of approximately $1.2 million and the settlement of existing debts of the Company of approximately $1.9 million. The Company expects to complete one more closing in the coming weeks.
Closing of Secured Debenture for HVAC Leasing
On March 12, 2015, the Company announced the closing of a $3,000,000 three year debenture by its wholly owned subsidiary, ODFSI. The closing consisted of a single debenture by the wealth management arm of one of Canada–s largest life and health insurance companies. The investor has the option to invest up to $50 million under the offering at their discretion. Management believes this to be a significant closing following a year of discussions and due diligence by this reputable institution.
Changes to Board and Executive Team
On March 23, 2015, Mr. Robert Cariglia, agreed to step down from the position of President and CEO of the Company. Mr. Cariglia will continue to serve as a director of the Company. Pierre G. Gagnon, Chairman of the Company stated “We wish to thank Bob for his dedicated service and contributions to the Company during its formative years and look forward to his continued contributions at the Board level”.
Michael Hilmer, Co-Founder, Chief Operating Officer of the Company, will assume the role of Interim President and CEO of the Company.
Also on March 29, 2015, the Board of Director–s passed a resolution inviting Dr. Stephen Simms to join the board. Dr. Simms has over 25 years of hands-on experience in the private and public company arena. He has been involved with every aspect of corporate management and growth, from initial start-up to product development, commercialization and sales. He has worked on corporate finance, business and product development, financial management, merger & acquisition reviews, infrastructure projects, financial forecasts, cash flows, budgets, financial analysis, project management and executive management.
On January 15, 2015, Gary Martin joined the Company as Senior Vice President, Sales and Marketing. Gary, who began his career at IBM, brings over two decades of global technology sales and leadership experience to DealNet. He has held senior sales and leadership roles with leading companies in the technology and business process outsourcing industry including: DMR Consulting Group, Changepoint, TELUS, PwC, and most recently Accenture. Throughout his career, he has worked with global clients across a number of industry sectors helping them maximize their return on investments in technology.
Major Contract Wins in Consumer Engagement Division
The Consumer Engagement business continues to thrive with growth from existing customers and new customer engagements:
Enhanced Product Offerings
Consumer Financing:
Other Corporate News
About DealNet Capital Corp.
Dealnet Capital Corp. focuses on two key vertical markets, Consumer Engagement and Consumer Finance. Through acquisitions, the Company has become a leader in the Consumer Engagement space helping their corporate customers –speak– to their consumers the way they want to be spoken to using live Voice, Chat, Text, Email and Proximity based engagement solutions. The Company has leveraged its engagement business to offer home improvement financing solutions to consumers, which offer attractive yields and low default rates. The Company continues to seek acquisitions in these key markets.
ON BEHALF OF DEALNET CAPITAL CORP.
For additional information please visit .
The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.
Forward-looking Statements
This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These statements involve risks and uncertainties including, without limitation, DealNet–s ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.
Contacts:
DealNet Capital Corp.
Michael Hilmer
COO, Interim President and CEO
+1-416-420-5529
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