Ft. Lauderdale, Florida – (The Hosting News) – December 8, 2006 – Web hosting company, Hostopia, has issued an additional 630,000 shares of its common stock in connection with the Company’s initial public offering, and the exercise of the over-allotment option granted to the underwriters.
Net proceeds for Hostopia from the exercise of the over-allotment option, after fees, will be approximately C$3.53 million. In total, including the over-allotment shares, the Company has sold 4,830,000 shares of the Company’s common stock at C$6.00 per share for gross proceeds of approximately C$29.0 million before underwriting fees and other costs. RBC Dominion Securities acted as lead underwriter of a syndicate that included TD Securities, GMP Securities, and Haywood Securities. Hostopia intends to use the net proceeds of its offering to invest in its application delivery platform, expand its portfolio of web services, expand their presence in the U.K market, and for general corporate purposes.
A registration statement relating to these securities has been filed with, and declared effective by, the United States Securities and Exchange Commission. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy the common stock of Hostopia.com, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Copies of the final prospectus may be obtained by US residents by submitting a written request by facsimile to RBC Capital Markets at (212) 428-6260.
Hostopia develops, manages, and distributes Internet applications used by small and medium sized businesses, including web site hosting, managed email, ecommerce, and other online business applications. Hostopia sells its services on a wholesale basis to communications services providers such as telecommunications and cable companies, Internet service providers, domain registrars, and web hosting companies who, in turn, resell Hostopia’s services under their own brand to small-medium sized business customers.
the final prospectus filed with Canadian securities authorities, please visit: www.sedar.com.
For more information about Hostopia, please visit: www.hostopia.com.