Content producer and distributor Digital Shelf Space (CVE:DSS) (OTCQX:DTSRF) said Tuesday that it closed its over-subscribed $1.5 million brokered private placement financing through Fin-XO Securities.
The company had announced the $1.5 million financing in February
2012, and was over-subscribed for around $1.56 million in gross
The company sold a series of units at a price of $0.15 each. Each
unit consisted of one common share and one half common share purchase
warrant, with each whole warrant entitling the holder to purchase one
additional common share at a price of 25 cents each, within a year and
half from closing.
Digital Shelf Space
said that if its common shares trade above 35 cents for a period of 10
consecutive trading days, the warrants, if unexercised, will expire 30
The new funds will be used toward marketing and advertising, content
development, new projects, transaction and related expenses, as well as
working capital and general corporate purposes, the company said.
In connection with the private placement, Digital Shelf Space
paid a cash commission to Fin-XO that was equal to seven percent of the
gross proceeds. The company also issued Fin-XO 708,085 broker warrants
for the purchase of Digital Shelf Space common shares.
Digital Shelf Space
is the company behind the GSP RUSHFIT DVD home workout series starring
Mixed Martial Arts (MMA) welterweight world champion Georges St-Pierre.
The home workout DVD fitness series has exploded in popularity recently, with Digital Shelf Space
announcing late last year that the product had become the number one
selling fitness DVD series of all time by a professional athlete, with
more than 250,000 DVDs sold in only the first year of distribution.
The GSP RUSHFIT workout series was designed to appeal to those with
an interest in MMA and MMA training methods, for an efficient home
fitness workout program, with minimal equipment. The product uses
various MMA conditioning exercises, intense circuit style training and
body weight training for fitness consumers to build muscle, cut weight
and get in shape.
As of the end of the third quarter, the company's GSP RUSHFIT DVD
workout series had been placed in over 4,000 stores across Canada,
beating its own initial target of 3,000 stores, and capturing over 80
percent of the key Canadian retail distribution channels available.
The fitness series is now represented in more than 90 countries
around the world, through Digital Shelf' Space’s global distribution
agreement with Northern Response.
In Canada, it is already carried by major retailers including Sears Canada, Zellers, Wal-Mart, Future Shop, National Sports, Sports Experts, Sport Check, Best Buy, and Canadian Tire, and in the US by The Sports Authority and Academy Sports and Outdoors.
Plans for international expansion continue to move forward, with the
company currently in negotiations. Last month, the company said its GSP
RUSHFIT home workout DVD fitness began retailing in the Philippines.
In December, Digital Shelf Space
announced a new long-term licence agreement with Georges St-Pierre
(GSP), for potential future fitness products and services under the
The new licence expands on the original 2010 agreement between Digital Shelf Space
and GSP signed for exclusively the home workout GSP RUSHFIT DVD series.
The new licence agreement provides the company a revenue share on all
new business ventures using the RUSHFIT brand, whether such ventures are
done by the company and GSP together, or if GSP uses the brand for any
mutually approved products and services.
The GSP RUSHFIT DVD series was launched in December of 2010, and can
be purchased directly through the GSP RUSHFIT website at
Digital Shelf Space
is an independent creator, producer and distributor of home
entertainment content and online delivery technology provider to digital
retailers, content owners and aggregators.