Calgary (pcJ News Briefs) – GINSMS Inc. (TSX-V: GOK) has entered into an agreement with its controlling shareholder, Xinhua Mobile Limited, for a private placement of 7,163,692 common shares at CDN $0.13 per common share for gross proceeds of CDN $931,279.96 or US $700,000
Proceeds will increase GINSMS’ current working capital and will be used to expand A2P messaging business segment in existing markets such as Indonesia, Malaysia, Taiwan and China, and to support its software products and service business segment.
Following the closing of private placement, GINSMS will have 149,793,861 common shares issued and outstanding. Xinhua Mobile together with its current ownership of 90,678,160 common shares or 63.58% of all issued and outstanding common shares, will own 97,841,852 common shares or 65.32% of all issued and outstanding common shares.
In connection with the private placement, Joel Chin, GINSMS’ CEO, and Inphosoft Pte. Limited, a company in which Chin is a shareholder and a director, and Xinhua Mobile, have agreed to lower the interest rates and extend maturity on the outstanding loans to GINSMS.
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