"Embattled Canadian software developer Corel Corp. said late
on Thursday it had secured a much-needed financial lifeline, adding
C$15 million in a bought deal financing agreement, with an option
for an additional C$15 million."
"Corel said after a trading halt that it had struck the deal
with Canaccord Capital Corp., which includes an option for an
additional C$7.5 million at Canaccord's discretion. By mutual
agreement, Corel and Canaccord can add another C$7.5 million to the
deal. The number of shares and the price will be determined based
on an amount equal to 90 percent of the average closing price of
Corel common stock on the Toronto Stock Exchange in the next four
"It's the first step in our comprehensive plan," Corel chief
financial officer John Blaine told Reuters. "Our next step will be
to concentrate on finalising our cost savings plan." Corel did not
disclose its cash reserves because it is in a quiet period in
advance of its quarter closing on May 31, but insisted it can meet
its financial obligations. "We're very comfortable we will will
continue to meet our obligations," Blaine said, adding that Corel
reviewed between six to eight financing options. "This is the only
equity financing we're pursuing."
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