TrueContext Mobile Solutions closes $1 mln private placement financing

TrueContext Mobile Solutions (CVE:TMN) said late Wednesday that it has closed a non-brokered private placement financing, raising gross proceeds of $1.0 million.
The mobile app company, responsible for the ProntoForms business app, issued a total of around 5.56 million units at 18 cents each, with each unit consisting of one common share and one half of one common share purchase warrant.
Each whole warrant entitles the holder to acquire one additional common share of TrueContext at a price of 30 cents per share, at any time up to June 30, 2014.
Unless permitted under applicable securities legislation, common shares and purchase warrants comprising the units cannot be traded before April 22, 2012, the company said.
TrueContext said the new funds will be used for sales automation for operator channels, and the start of operator channel sales in new geographies, as well as for working capital purposes.
Speaking to Proactive Investors earlier this week, TrueContext's CFO Dave Croucher said the third quarter saw good quarter-on-quarter growth rates, citing the addition of US telecoms giant AT&T (NYSE:T) as a reseller as an important growth driver for the company.
Croucher also said that the company was actively working on distributing the company's services to new geographies.
The company, which in early 2010 announced its reseller partnership with AT&T, is responsible for the ProntoForms business application, which does away with paperwork and redundant data entry, allowing field workers in the retail inspection field, for example, to fill business forms out of the office from all major device platforms such as Apple's (NASDAQ:AAPL) iPad, RIM's (NASDAQ:RIMM)(TSE:RIM) Blackberry, Google's (NASDAQ:GOOG) Android platform and Microsoft's (NASDAQ:MSFT) Windows Mobile platform.
In the latest third quarter, US operator channel subscription revenues, such as those from the AT&T partnership, increased to $141,606, up 30 percent from the second quarter. Operator channels subscribers per month increased 24 percent over the second quarter, to 4,486.
The app, which is available for purchase directly through AT&T's Small Business Mobile Application Recommender Tool (SMART), allows companies to streamline their out-of-office processes and workflows by turning paper forms into mobile ones. ProntoForms allows users to create forms, generate reports, as well as capture signatures and photos within minutes, all in real-time over the AT&T wireless network.
Data on the mobile form is then maintained securely in a data-center, and can be turned into emails or PDF reports, instantly accessible with an internet connection or connected to back office systems.
The app hits the sweet spot in terms of what small and medium businesses desire for mobile applications - it is a tool that will help their mobile workforce increase productivity in the field, helping businesses save time and be more effective.
Subscribers can also download templates and customize forms as they wish through the TrueContext website.
Earlier this week, the company announced product upgrades that improve the speed and efficiency of collecting and reporting data for its ProntoForms Service.
The company said that the app and portal upgrades are free to existing users, making it easier and more affordable for companies to take their paper forms mobile.
The Pro-Services team offers customized data connections to back office systems - commonly completed with four days or less of Pro-Services consulting.
Ottawa-based TrueContext, formed in 2001, has a powerful and proprietary patent portfolio, from which ProntoForms' mobile app and web-reporting portal are developed.