DENVER – 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.
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