Evercel to Invest in Marketing Automation Software Company
March 28 2018 - 4:01PM
Evercel, Inc. (“Evercel”) (OTC:EVRC) announced today that it has
invested approximately $8M in SharpSpring (NASDAQ:SHSP) in the form
of a Convertible Note. Today’s investment builds on a
previous investment of 519,000 public shares of SharpSpring that
Evercel acquired in November 2017 for approximately $2M and which
represents a 6.1% stake in the SharpSpring.
SharpSpring, a Gainesville Florida-based company, is a rapidly
growing, highly-rated global provider of affordable marketing
automation delivered via a cloud-based Software-as-a Service (SaaS)
platform. Thousands of businesses around the world rely on
SharpSpring to generate leads, improve conversions to sales, and
drive higher returns on marketing investments. Known for its
innovation, open architecture and free customer support,
SharpSpring offers flexible monthly contracts at a fraction of the
price of competitors making it an easy choice for growing
businesses and digital marketing agencies. SharpSpring has
been growing core revenue at a rate of more than 40% annually since
inception and is run by the entrepreneur who founded the business
six years ago. The funds received by SharpSpring from
Evercel’s investment will enable SharpSpring to accelerate customer
acquisition and revenue growth through increased sales and
marketing spend.
The five year note will entitle the holder to an annual 5% PIK
interest payment, and is convertible into shares of common stock of
SharpSpring at a price of $7.50 per share. SharpSpring can
force conversion at 175% of the conversion price (approximately
$13.13), and can extend the maturity of the note for up to 18
months, but at an annual PIK interest rate of 10%.
SharpSpring may redeem the note at maturity for cash or for common
stock issued at a 20% discount to the then-market price.
Unpaid PIK interest will fully accelerate in a forced conversion or
a change of control. The note will be subordinated to a
limited amount of SharpSpring senior debt.
Evercel’s investment is being made through a newly formed
affiliated entity, SHSP Holdings LLC, which will be managed by
another Evercel affiliate, Corona Park Investment Partners.
As part of the transaction, Evercel will nominate a
representative of Corona Park to join the SharpSpring Board of
Directors. Evercel plans to host a conference call on Monday,
April 2 at 4:30pm EST to discuss the investment further. Call
in information will be posted on Evercel’s website, at
www.evercel.com. Cautionary Statement Regarding Forward
Looking Information, Reporting Policy Statements in this
announcement that are not historical facts are “forward-looking
statements” that may involve material risks and
uncertainties. Evercel wishes to caution readers not to place
undue reliance on such forward-looking statements. All such
statements speak only as of the date made.
Evercel does not report its financial and other information
publicly with the SEC. Evercel chooses to voluntarily report
information periodically at the discretion of management.
However, management may change Evercel’s reporting policy at
its discretion without notice. The information provided in
this announcement, and any other information provided by Evercel as
to its operations, financial condition, prospects or any other
matter does not purport to be complete as it does not contain risk
factors, qualifications or further explanations that investors
could deem relevant.
CONTACT:
Evercel, Inc.
info@evercel.com
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