Issuer Direct Corporation (OTCBB: ISDR) has not only bought a Richmond-based company but also raised additional capital.
The Morrisville-based firm, which focuses on cloud-based compliance and other services, has closed on a $3.45 million deal to acquire PrecisionIR.
It also raises $2.5 million in capital through secured note.
Both transactions were disclosed Monday.
Issurer Direct shares closed at $8.34 on Monday.
Precision IR provides online investor relations and web-based corporate communications services.
The deal is expected to “more than double” Issurer Direct’s revenues, the company said in a statement.
“This strategic acquisition significantly increases our customer base and adds new complementary solutions to our already robust suite of offerings,” said Issurer Direct CEO Brian Balbirnie. “The team at PrecisionIR has done a remarkable job at building value around its Annual Report Service (ARS) and Company Spotlight offerings. We will continue to foster this line of business by augmenting it with our disclosure management platform — these are truly some exciting times for our customers, shareholders and employees. In fact, following this transaction, Issuer Direct will file, print and distribute more regulatory content to both the markets and shareholders from a single platform, than any other company in the world.”
The new funding comes from Red Oak Partners, which will receive a secured promissory note that can be converted into 626,566 shares of Issurer Direct stock.
As part of the deal, David Sandberg, the founder of Red Oak partners, joins the Issuer Direct board/
Issurer Direct maintains offices in Morrisville, Richmond and London.
