Park City Group Completes $5.8 Million Private Placement
Company Enhances Working Capital Position as Demand for its Products and Services Grows
Park City Group, Inc. (OTCBB: PCYG) today announced it raised $5.8 million through a private placement of 584,000 shares of convertible Series A Preferred Shares with accredited investors. Each share is convertible into common shares at a conversion price of $3.00 per share. The net proceeds from the private placement will be used for information systems expansion, the purchase of redundancy infrastructure and storage, deployment of hardware to improve processing speed, and provide working capital for general purposes. Improvements will be made to address the growing demand for its Supply Chain Profit Link, Fresh Market Manager and Action Manager products and services. Taglich Brothers acted as the Company’s placement agent in connection with this private offering.
Randall Fields, Park City Group Chairman and CEO said, “The additional capital position will provide us with the financial flexibility to scale our technological requirements sooner than what we originally envisioned without straining our immediate resources. This supplemental liquidity will allow us to balance our accelerated growth track while optimizing the technological resource requirements to achieve our capital and operating objectives.”
The shares of common stock have not been registered under the Securities Act of 1933 and may not be subsequently offered or sold by the investors in the United States absent registration or an applicable exemption from the registration requirements. Park City Group has agreed to file a registration statement covering the underlying common stock associated with the conversion rights of the preferred stock and warrants by investors.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
