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Intermap Announces $6.45 Million Private Placement Financing

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Intermap Announces $6.45 Million Private Placement Financing Powered By Docstoc
					Intermap Announces $6.45 Million Private
Placement Financing
April 20, 2011 07:18 PM Eastern Daylight Time 

DENVER--(EON: Enhanced Online News)--Intermap Technologies Corporation ("Intermap" or the "Company")
(TSX:IMP) announced today that it has entered into agreements with the Company’s two largest shareholders,
Special Situations Funds (“SSF”) and Invesco Trimark Ltd. (“ITL”) (both as managers of or advisors to individual
funds that hold Common Shares of Intermap), and certain other investors, for a private placement of
CDN$6,450,000 of units ("Units") of Intermap (the "Offering"). 

About the Offering

The Offering will consist of a non-brokered private placement by Intermap of 16,125,000 Units at a price of
CDN$0.40 per Unit for gross proceeds of CDN$6,450,000.

Each Unit shall consist of one common share (a "Common Share") and one common share purchase warrant (a
“Warrant”) of Intermap. Each Warrant will entitle the holder thereof to purchase one Common Share at a purchase
price of CDN$0.48 per share for a period of three years from the issue date. The terms of the Offering include a
mandate that requires the replacement of four of the current members of the Company’s Board of Directors. The
investors participating in the Offering will not be appointing any of the four new directors. The replacement of the
Directors is scheduled to take place at or before the time of the Company’s next annual general meeting currently
scheduled to be held in late July or early August 2011.

“This financing is an important requirement in our process to restructure Intermap and create a growing and
profitable company in the future,” said Todd Oseth, Intermap’s new Chief Executive Officer. “The financing will
provide the necessary working capital to move the Company forward with its new business plan. I’m pleased to see
that our largest shareholders continue to support the vision of the Company."

The Offering is anticipated to close on or about April 28, 2011, subject to receiving the required regulatory
approvals; however in no event earlier than April 28, 2011. The Company has 61,481,183 issued and outstanding
Common Shares currently. Assuming exercise of all of the Warrants to be issued pursuant to the private placement,
32,250,000 Common Shares, equal to 52.4% of the currently issued and outstanding Common Shares will be
issued.

As part of the private placement, SSF has agreed to purchase 10,750,000 Units (CDN$4,300,000) and ITL has
agreed to purchase 3,500,000 Units (CDN$1,400,000). The remainder of the Units will be subscribed for by
arm’s-length investors.

The obligation of the investors to purchase the Units under the Offering is subject to a number of conditions,
including Intermap having received conditional approval of the private placement and the listing of the Common
Shares to be issued in the Offering from the TSX, subject only to the satisfaction by Intermap of customary post-
closing conditions imposed by the TSX in similar circumstances, and without the requirement of Intermap to obtain
shareholder approval to the Offering.

Use of Proceeds

The proceeds of the Offering will be used by the Company to fund working capital, expand its Internet commerce
capabilities, integrate third party terrain data, and for general corporate purposes.
Pro Forma Ownership of Major Shareholders

SSF holds, directly or indirectly, 4,301,204 Common Shares (representing approximately 7.0% on a non-diluted
basis of the currently issued and outstanding Common Shares). Following completion of the Offering, SSF will hold,
directly or indirectly, 15,051,204 Common Shares and 10,750,000 Warrants (representing, if CDN$6,450,000 is
raised, approximately 19.4% on a non-diluted basis and approximately 29.2% on a partially diluted basis, taking into
account only those Warrants held by SSF, of the issued and outstanding Common Shares).

ITL holds, directly or indirectly, 11,661,100 Common Shares (representing approximately 19.0% on a non-diluted
basis of the currently issued and outstanding Common Shares). Following completion of the Offering, ITL will hold,
directly or indirectly, 15,161,100 Common Shares and 3,500,000 Warrants of the Company (representing, if
CDN$6,450,000 is raised, approximately 19.5% on a non-diluted basis and approximately 23.0% on a partially
diluted basis, taking into account only those Warrants held by ITL, of the issued and outstanding Common Shares).

TSX Matters

Intermap will apply to list the Common Shares issuable under the Offering, including Common Shares issuable
pursuant to the exercise of the Warrants, on the TSX. The Offering is subject to the approval of the TSX. Since the
Offering will (i) provide for the issuance of Common Shares and Warrants to insiders of the Company of greater
than 10% of the number of Common Shares which are currently outstanding, (ii) provide for the issuance of
Common Shares and Warrants of greater than 25% of the currently outstanding Common Shares, and (iii) be
deemed under the rules of the TSX to materially affect control of the Company, the rules of the TSX require that,
unless an exemption is applicable, the Company obtain approval of the Offering from the holders of a majority of the
Common Shares, excluding the votes attached to the Common Shares held by ITL. However, the rules of the TSX
contain an exemption from the requirement to obtain shareholder approval if a committee of independent board
members of the Company, free from any interest in the Offering and unrelated to the parties involved in an offering,
has recommended the Offering, and the independent members of the board of directors have resolved that the
Company is in serious financial difficulty, the Offering is designed to improve the Company’s financial condition, and
the Offering is reasonable for the Company in the circumstances.

The Company’s board of directors established a special committee consisting of three of the Company’s
independent directors. These independent directors concluded that the Company is in serious financial difficulty, the
proposed Offering is designed to improve the Company’s financial condition and the Offering is reasonable for the
Company in the circumstances. The special committee concluded that the Company is in serious financial difficulty
and that if the proposed Offering is not completed in the very near term, the Company may be forced to cease
operations.

The TSX has advised the Company that reliance on this exemption will automatically result in a TSX de-listing
review to confirm that the Company continues to meet TSX listing requirements. The Company believes the de-
listing review is a routine procedure when using this exemption and currently complies with applicable TSX listing
requirements and expects to continue to comply with such requirements following completion of the financing.

By enhancing the Company’s working capital, the Offering will significantly improve Intermap’s financial position and
ability to execute its business plan. If Intermap is not able to conclude the Offering and does not receive additional
financial resources in the near term, it might cease operations.

This news release does not constitute an offer to sell any of Intermap’s securities. The securities offered under the
Offering have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable exemption from the registration requirements. This press
release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any State in which such offer, solicitation or sale would be unlawful.

About Intermap Technologies

Intermap Technologies is a preeminent digital mapping and geospatial solutions provider that has set the industry
standard for creating uniform high-resolution 3D digital models of the earth’s surface. The Company has proactively
remapped entire countries and built uniform national databases, called NEXTMap, consisting of affordably priced
elevation data and geometric images of unprecedented accuracy. Demand for NEXTMap data and the Company’s
contract mapping services is growing as commercial applications emerge within the GIS, federal & civil government,
national mapping, defence and intelligence, automotive, insurance risk assessment, wireless telecommunications, and
cloud-based web services markets.

Headquartered in Denver, Colorado, Intermap has offices in Calgary, Jakarta, Munich, Prague, and Washington,
D.C. For more information, visit www.intermap.com.

Intermap Reader Advisory

Certain information provided in this news release constitutes forward-looking statements. The words
"anticipate," "expect," "project," "estimate," "forecast" 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. You can find a discussion of such risks
and uncertainties in our 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.

Contacts
Intermap Technologies
Richard Mohr, 303-708-0955
Senior Vice President & Chief Financial Officer
rmohr@intermap.com
or
Canada – Financial
E-vestor Communications Inc.
Corbet Pala, 416-657-2400
Investor Relations
cpala@evestor.com
or
United States – Financial
Genesis Select Corporation
Budd Zuckerman, 303-415-0200
Investor Relations
bzuckerman@genesisselect.com

				
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Description: DENVER--(EON: Enhanced Online News)--Intermap Technologies Corporation ("Intermap" or the "Company") (TSX:IMP) announced today that it has entered into agreements with the Company’s two largest shareholders, Special Situations Funds (“SSF”) and Invesco Trimark Ltd. (“ITL”) (both as managers of or advisors to individual funds that hold Common Shares of Intermap), and certain other investors, for a private placement of CDN$6,450,000 of units ("Units") of Intermap (the "Offering"). About the Offeri a style=
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