CALGARY,
Feb. 15, 2017
/CNW/ - Ivrnet Inc. (TSXV: IVI) ("Ivrnet" or the
"Corporation") announces the signing and financing of seven new
contracts for its Ivrnet Central membership management
software.
Ivrnet has signed three Edmonton residential community organizations
to long-term contracts to employ Ivrnet Central for fee
collection, member registration and community facilities.
Collectively, the three contracts are worth a total of $210,000 over a five-year
period.
Ivrnet signed four Calgary residential community organizations in
January, 2017 to long-term contracts to employ Ivrnet Central. In total, the
contracts are worth $510,000 over a
five-year period. One of the contracts is for one-year with a
four-year extension option.
"We are right on target," explains Ivrnet CEO David Snell. "We are maintaining our goal of
signing one new Ivrnet
Central community per month."
The first client to be deployed under these new contracts
was the 4,500 home Lake Summerside Residents
Association. Further information and comments
about the successful deployment can be found under "News" on the
Ivrnet website
(www.ivrnet.com).
Ivrnet CEO David Snell
explained that all seven organizations can add additional Ivrnet Central features to
accommodate their growing organizational requirements over the term
of the contract. This in turn would mean
additional revenue growth for Ivrnet.
As is common business practice, a portion of the contracts
were financed to provide the upfront capital required for
configuration, customization, installation and
training. It is typical in the software industry
to finance and recognize revenue on contracts as 50% of the
contract upfront and 50% over time. Ivrnet projects to finance and
recognize between 35% and 50% of major Ivrnet Central contracts
upfront, with the balance recognized over
time.
As per the terms and conditions of the $3,000,000 credit facility provided by
R.C. Morris & Company Special
Opportunities Debt Fund III LP; previously announced on
August 3, 2016, financing of
$300,825 was provided at a cost of
17% and 421,155 share purchase warrants at a market price of
$0.05. The Warrants expire no later
than five (5) years from date of issuance.
Warrants and any shares issued upon exercise of the warrants are
subject to a 4-month hold period from the date of closing or date
of exercise of the warrants. These Contracts and their sale and
financing is structured so that the 17% interest on the
$300,825 is recovered by Ivrnet over
the course of the contract.
Ivrnet Central
provides online
management of operations and financial processing for membership
driven organizations. Ivrnet Central is a mission critical part of
operations for both Resident and Community Associations. Ivrnet
Central automates and secures the registration and payment of fees
for programs, classes, facility rentals and annual memberships,
reducing the association's manpower costs for managing, auditing
and securing these activities.
About
Ivrnet
Ivrnet is a software and communications company that
develops, hosts, sells and supports value added business process
improvement and advertising software applications, delivered
through the traditional phone network and the Internet. These
applications facilitate automated interaction through personalized
communication between people; mass communication for disseminating
information to thousands of people concurrently and personalized
communication between people and automated systems. Ivrnet's
applications are accessible through nearly any form of
communication technology, at any time, from anywhere in
North America via voice, phone,
fax, email, texting and the Internet.
www.ivrnet.com
Neither the TSX Venture Exchange nor
its regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE IVRnet Inc.