Boardwalktech closes first tranche of private placement, raises C$790K

Boardwalktech Software Corp. (TSXV: BWLK) (OTCQB: BWLKF) has closed the first tranche of a non-brokered private placement, issuing 15,800,000 units at C$0.05 per unit for gross proceeds of approximately C$790,000, according to a press release from the Cupertino, California-based company.

Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at C$0.06 for a period of two years from the date of issuance.

Insiders of the company participated in the first tranche for an aggregate amount of C$750,000. The company said the insider participation constitutes a related party transaction under Multilateral Instrument 61-101, but that it qualifies for exemptions from valuation and minority shareholder approval requirements, as the fair market value of securities involved does not exceed 25% of the company's market capitalization.

Certain finders received 8% cash commissions and 8% non-transferable finder's warrants exercisable at C$0.06 per share for two years. In total, 64,000 finder's warrants and C$3,200 in cash commissions were paid in the first tranche.

The company stated it intends to use net proceeds for general corporate purposes. Additional tranches are expected to close within the coming weeks. The offering remains subject to final approval from the TSX Venture Exchange, and the issued securities are subject to a hold period of four months plus one day from the date of issuance.

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