2-4-14 8:45 AM EST | Email Article

Sigma Capital Partners makes Equity Investment and advises Posera-HDX Ltd.

Canada NewsWire


TORONTO, Feb. 4, 2014 /CNW/ - Paul K. Howell, CEO of Posera-HDX Ltd. Reports:

Posera-HDX Limited ("Posera-HDX" or the "Company") recently announced the closing of a private placement of Posera-HDX Common Shares.  The Company issued a total of 3,108,667 Common Shares for gross proceeds of $932,600.

Sigma Capital Partners (Sigma), a U.S. based technology private equity fund, has made an equity investment of $500,000 USD and acted as an advisor in respect to the Common Shares issued. Sigma received an advisor's fee of $35,000 USD together with warrants to acquire 177,533 Common Shares.  The warrants are exercisable for a period of two years at an exercise price of $0.45 per Common Share.

Commented Maydan Rothblum, Managing Director at Sigma: "Given our experience in the transaction processing space, we believe that there are significant growth opportunities in this segment and that Posera-HDX is well positioned to capitalize on them. We are excited to become an equity investor and are looking forward to helping the Company expand its U.S. presence, both from a business development and capital markets perspective."

Due to the requirement for EMV compliant payment technologies in the United States, and the announced fraudulent transaction liability shift from major credit card companies to merchants in October of 2015, Posera-HDX Ltd. anticipates rapid growth of new payment solution deployment in the United States in the coming years.

"The Sigma team has demonstrated that they understand our industry, our company, and the opportunities available to Posera-HDX over the coming years" said Paul Howell, CEO of Posera-HDX. "Maydan has followed our company and provided valuable guidance and insight for a number of years and this recent transaction has formalized our already complementary relationship. Posera-HDX is honoured to work with Sigma.

Sigma Capital Partners, LLC, through its affiliate fund Sigma Opportunity Fund II, LLC, is a multi-strategy private equity firm that focuses on investing in small-to-mid size companies operating primarily in the IT, Telecom, Technology and Business Services industries.  Sigma works closely with management to unlock shareholder value and provide guidance and assistance in the areas of finance, operations, strategy, M&A and business development. For more information, please visit: www.sigmacp.com

The Company's Common Shares are listed on the Toronto Stock Exchange (the "TSX") under the symbol "HDX". The proceeds from the private placement are currently primarily targeted to be utilized to (i) increase the working capital position of the Company and (ii) expand its workforce in connection with growing its current business and in order to take advantage of the opportunities presented by the recent acquisition of Zomaron Inc.

The Common Shares being issued pursuant to the private placement were approved for listing on the Toronto Stock Exchange.

About the Company

With proven experience in EMV Chip and PIN compliant technologies, Posera-HDX is in the business of managing merchant transactions with consumers and facilitating payment.

The Company develops and deploys touch screen POS system software and associated enterprise management tools and has developed and deployed numerous POS applications. Posera-HDX also provides system hardware integration services, merchant staff training, system installation services, and post sale software and hardware support services.

Posera-HDX Ltd. acquired Zomaron Inc. in December 2013. Zomaron provides credit and debit card processing solutions to Canadian merchants nationwide. Based in London, Ontario, Zomaron has offices in Edmonton AB, Toronto ON, and Montreal QC. Through its nation-wide network of sales representatives and strategic partnerships, Zomaron has experienced rapid growth, doubling its sales annually. Zomaron's exponential growth led it to be ranked on PROFIT magazine's 13th and 14th annual PROFIT HOT 50 ranking.

The addition of Zomaron's 150 sales agents will greatly increase Posera-HDX's ability to market and distribute the Company's leading edge technology including prepaid stored value payments solutions, customer self serve kiosks and "line buster" mobile point of sale terminals. These products have been designed to dramatically enhance customer throughput and drastically reduce customer queues. These technologies are especially effective in high foot traffic environments that have limited cash register counter space, limited retail square footage, and the absence of a drive through.

Posera-HDX Limited develops, deploys, and supports a restaurant point-of-sale software know as "Maitre'D" which has been deployed in over 20,000 locations worldwide in eight different languages.  The Company sells and services its clients directly, as well as through a network of approximately 96 value added reseller partners in 25 countries with approximately 600 representatives selling, supporting & installing its software.  Posera-HDX employs approximately 135 people in offices in Toronto, London, Brantford, Mississauga, Seattle, Montreal, Glasgow (U.K.), Paris (France) and Singapore.

Additional information on Posera-HDX is available in the financial reports filed by the Company with SEDAR at www.sedar.com and posted to the Investor Relations section of the Company's website at www.hdxsolutions.com

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws an may not be offered or sold within the United States of to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Forward-Looking Statements

This press release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with our business and the environment in which the business operates.  Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management.  The forward-looking statements are not historical facts, but reflect Posera-HDX's current expectations regarding future results or events.  These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Annual Information Form filed on March 28th, 2013 with the regulatory authorities.  Posera-HDX assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.


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Morningstar - - Sigma Capital Partners makes Equity Investment and advises Posera-HDX Ltd.
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