TORONTO, ON--(Marketwired - August 14, 2015) - Keek (TSX VENTURE: KEK) (OTCQX: KEEKF) is pleased to announce that its Board of Directors approved a non-brokered private placement of units to raise gross proceeds up to $1,150,000. Each unit will be issued at a price of $0.20 per unit and consist of one Keek common share and one common share purchase warrant. Each warrant is exercisable to purchase one additional Keek common share at an exercise price of $0.25 per share for a period of 36 months from the date of issuance.
The closing of the first tranche, consisting of 4,084,000 units for gross proceeds of $816,800, occurred today, resulting in the issuance of 4,084,000 Keek common shares and 4,084,000 warrants. The second closing consisting of 1,666,000 units for gross proceeds of $333,200 is expected to close within 30 days. The Keek securities issued in connection with the first tranche closing of the private placement will be subject to a four month hold period expiring on December 15, 2015. Keek received conditional acceptance for the private placement from the TSX Venture Exchange, subject to the filing of final materials following the closing of the second tranche.
In addition, pursuant to price protection provisions granted to Hurorosh Partners Inc. in connection with the private placement of 1,000,000 units for gross proceeds of $250,000 announced by Keek on July 9, 2015, today Keek issued an additional 250,000 Keek common shares to Hurorosh Partners Inc. for no additional consideration and amended the number and exercise price of the warrants originally issued to Hurorosh Partners Inc. The securities issued to Hurorosh Partners are subject to a four month hold period expiring on December 15, 2015.
Today, Keek also issued 300,000 Keek common shares to an arm's length party at a price of $0.20 per Keek common share to settle $60,000 worth of debt. Keek received conditional acceptance from the TSX Venture Exchange for these issuances and the Keek common shares issued are subject to a four month hold period expiring December 15, 2015.
Keek is also very pleased to announce that it has entered into a technology platform licence agreement with Personas.com Corporation (www.personas.com) ("Personas") pursuant to which it has granted Personas a non-exclusive license to use Keek's proprietary software to facilitate commercial transactions and communication between the members of certain social network communities, as well as between the members and brick and mortar retailers, online retailers, brands and advertisers, which will be rolled out to Keek's platform and its 74 million registered users in the coming months.
Pursuant to the technology agreement, Personas has agreed to pay Keek a licensing fee equal to 10% of the gross revenue earned by Personas through the use of Keek's platform.
"Personas and I are thrilled to be working with the Keek Team to collectively usher in the era of social commerce. It is our goal to set the standard for social commerce in the 21
"Keek is looking forward to the partnership with Mark and his team at Personas to integrate both of our technologies in a way that will excite and activate our member community," says Gerry Feldman, Director of Keek. "We are also very happy to announce a much needed financing that will provide Keek the necessary funds over the coming months to integrate our technology with Personas and continue to roll out our Social Trivia Platform."
In connection with the recent board appointments announced August 6, 2015, Chief Financial Officer Alex Macdonald has agreed to resign as a director. Alex will remain as Chief Financial Officer. The Board wishes to thank Alex for acting as a board member through the transition of various board members and management.
The private placement proceeds will be used by Keek for implementation of the licensing agreement with Personas, continuing development of its Keek Social Trivia project as well as for general corporate purposes.
About Keek:
Keek is a leading mobile video social network with members worldwide. Keek is easy to use, fast and personal. With Keek, members around the world create and interact with videos up to 36 seconds in length and 111 characters of accompanying text, in either public or private views. Keek makes it simple for anyone to instantly create, distribute, discover and react to content in real-time across mobile devices and the web. The Keek app is available in over 190 countries across 6 global regions, and in 36 languages.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "might", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information and/or statements. Forward-looking statements and/or information are based on a number of material factors, expectations and/or assumptions of Keek which have been used to develop such statements and/or information but which may prove to be incorrect. Although Keek believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements as Keek can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the anticipated timing of the roll out of Personas technology to Keek's platform, the receipt of any future licensing fees by Keek; Keek's future plans; the timing and closing of the second tranche of the financing; availability of financing and/or cash flow to fund current and future plans and expenditures, including with respect to the use of proceeds of the private placement completed by Keek; and the timely receipt of final regulatory approvals. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and/or statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results and/or events to differ materially from those anticipated in such forward-looking information and/or statements including, without limitation: risks associated with the uncertainty of obtaining all applicable regulatory approvals and certain other risks detailed from time-to-time in Keek's public disclosure documents. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Keek does not undertake any obligation to publicly update and/or revise any of the included forward-looking statements, whether as a result of additional information, future events and/or otherwise, except as may be required by applicable securities laws.
For further information please contact:
Gerry Feldman, CPA, CA
Director of Keek
Gerry@feldman.ca
416-606-7655
Mark Itwaru
CEO and Chairman of Personas
mark@personas.com
416-815-7000 ext. 320
Or
Dimi Paun
Interim Chief Executive Officer and Chief Technology Officer
416-639-5335 ext. 230
dimi@keek.com
