/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES/
DENVER,, Nov. 4, 2020 /CNW/ - Intermap Technologies
Corporation ("Intermap" or the "Company") today announced that it
has closed the first tranche of an issuer private placement (the
"Private Placement") of 1,648,874 Class A common shares ("Shares").
The Shares were issued at a price of CAD$1.03 per share, for aggregate gross proceeds
of CAD$1,698,340. The Company intends
to use the net proceeds for general corporate purposes and to fund
its growth.
The Company is pleased to report progress recapitalizing while
safeguarding approximately US$188
million of valuable net operating losses, net of
approximately US$33 million that
resulted from the previously announced gain on the settlement of
notes payable. Under Section 382 of the US Internal Revenue Code
("IRC 382"), the Company's US tax attributes may be limited if
there is a deemed ownership shift of greater than 50% of the issuer
during the prior three-year period. A deemed ownership change would
limit the Company's ability to utilize its tax attributes to
increase future cash flow. As a result of this private placement,
the total ownership shift for the prior three years, immediately
following the private placement, will be approximately 45%, well
within the IRC 382 allowances. The Board and management will
remain diligent in maximizing these tax assets as they consider
alternative capital strategies to accelerate the Company's growth
and strategic opportunities.
"We are pleased to provide for the Company's growth in a simple
common share offering that continues to expand our base of
informed, long-term shareholders," said Patrick A. Blott, Intermap Chairman and CEO.
"With a stronger balance sheet, Intermap is poised to take
advantage of opportunities that accelerate its business plan. At
the same time, we are executing capital transactions that are
accretive and tax efficient, while providing for greater future
liquidity in our common stock."
All Shares issued under the Private Placement are subject to a
four-month hold period, during which trading in the securities is
restricted in accordance with applicable securities laws. The
Private Placement and the listing of the Shares issued under the
Private Placement on the Toronto Stock Exchange (the "TSX") are
subject to final approval of the TSX upon satisfaction of customary
closing conditions. The TSX has conditionally approved the Private
Placement and the listing of the Shares issued thereunder.
For more information about Intermap's geospatial solutions,
visit intermap.com/investors to download a presentation.
Intermap Reader Advisory
Certain information
provided in this news release, including the
use of proceeds of the Private
Placement, constitutes forward–looking
statements. The words "intends to", "anticipate", "expect",
"project", "estimate", "forecast", "will be", "will consider", and
similar expressions are intended to identify such
forward–looking statements. Although Intermap
believes that these statements are based on information and
assumptions which are current, reasonable and complete, these
statements are necessarily subject to a variety of known and
unknown risks and uncertainties. Intermap's
forward–looking statements are subject to risks and
uncertainties pertaining to, among other things,
COVID–19 and its impact on both the
Company's business and operations and those of its
customers, cash available to fund operations, availability of
capital, revenue fluctuations, nature of government contracts,
economic conditions, loss of key customers, retention and
availability of executive talent, competing technologies, common
share price volatility, loss of proprietary information, software
functionality, internet and system infrastructure functionality,
information technology security, breakdown of strategic alliances,
and international and political considerations, as well as those
risks and uncertainties discussed Intermap's Annual Information
Form and other securities filings. While the Company makes these
forward–looking statements in good faith, should one
or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary
significantly from those expected. Accordingly, no assurances can
be given that any of the events anticipated by the
forward–looking statements will transpire or occur,
or if any of them do so, what benefits that the Company will derive
therefrom. All subsequent forward–looking statements,
whether written or oral, attributable to Intermap or persons acting
on its behalf are expressly qualified in their entirety by these
cautionary statements. The forward–looking statements
contained in this news release are made as at the date of this news
release and the Company
does not undertake any obligation to update publicly or to revise any of the forward–looking statements made herein,
whether as a result of new information, future events or otherwise, except as may be required by applicable securities
law.
About Intermap Technologies
Founded in 1997 and
headquartered in Denver, Colorado,
Intermap (TSX: IMP) (ITMSF: BB) is a global leader in geospatial
intelligence solutions. The Company's proprietary NEXTMap® database
and value– added geospatial data management, processing,
analytics, fusion and orthorectification software and solutions are
utilized across a range of industries that rely on accurate,
high–resolution elevation data,
including aviation, engineering, environmental planning, government markets, hydrology, insurance, land
management, law enforcement and patrol, oil and gas, renewable
energy, telecommunications, transportation and utilities.
Intermap's commercial applications include location–based
intelligence, risk assessment, geographic information systems,
global positioning systems and 3D visualization. For more
information, please visit www.intermap.com.
SOURCE Intermap Technologies Corporation