TORONTO, ONTARIO--(CCNMatthews - May 28, 2007) - Groupworks Financial Corp. ("Groupworks" or the "Corporation") (TSX VENTURE:GWC), is pleased to announce it has completed its Initial Public Offering ("IPO" or "Offering") pursuant to its Prospectus dated April 27, 2007 which has been filed with and receipted by the Ontario, British Columbia, and Alberta Securities Commissions. The Common Shares of the Corporation are expected to begin trading under the symbol GWC on the TSX Venture Exchange at market open on Wednesday, May 30, 2007.
The total proceeds received by the Corporation were $3,780,000 (6,300,000 Units at $0.60 per Unit) which represents the maximum available offering under the Prospectus dated April 27, 2007. Each Unit consists of one common share (a "Common Share") of the Corporation and one-half of one share purchase warrant of the Corporation (each whole such share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share at a price of $1.00 until May 28, 2009, provided that if the closing price of the Common Shares on the principle stock exchange on which such shares trade exceeds $1.20 for any 20 consecutive trading days, the Warrant term shall be automatically reduced and the Warrants will expire on the date that is 30 days following the issuance of a press release announcing the reduced Warrant term. Groupworks intends to use the net proceeds of the IPO to reduce indebtedness and for operating purposes.
Jones, Gable & Company Limited (the "Agent") acted as agent for the IPO. The Agent received a cash commission plus Agents' warrants equal in number to 7% of the aggregate Units sold pursuant to the Offering. Each Agent's warrant is non-transferable and exercisable into Common Shares at a price of $0.60 for a period of 24 months following closing.
For further information, please refer to the Company's Prospectus dated April 27, 2007 available at sedar.com.
Groupworks Financial Corp. is a leading consolidator of independent employee benefits and pension consulting practices in Canada. The company's objective is to become a national benefits and pension consulting and administration organization, building on the success of its recent acquisitions of Buffett Taylor & Associates and The Investment Guild; providing superior customer service and solutions-based benefits and pension consulting to Canadian businesses for over 25 years.
FOR FURTHER INFORMATION PLEASE CONTACT:
Groupworks Financial Corp.
Derrick March, CEO
11 Allstate Parkway, suite 100, Markham, Ontario, L3R 9T8
(905) 470-6723 (FAX)