WellPoint Systems closes US$2M financing

CALGARY _ WellPoint Systems Inc.(TSXV:WPS) says it has closed a US$2 million financing and appointed a new president and CEO.

The Calgary-based software company said the private placement offering of a convertible secured debenture is with an investment fund managed by associates of the private equity firm Quorum Funding Corp.

The debenture matures on Jan. 30, 2014 with an adjustable interest rate of 7.75 per cent, which is convertible into common shares of WellPoint at a conversion price of 30 cents per share.

WellPoint said the proceeds will be used to fund ongoing investment in developing and delivering integrated back office solutions to the oil & gas and mining markets, and for general working capital purposes.

WellPoint has also signed an agreement with a Quorum subsidiary to buy US$2 million worth of WellPoint Systems' back office oil and gas solutions for sales to independent oil companies, and national oil companies within the Middle East, North Africa and India.

WellPoint also appointed Richard Slack as its president and CEO, replacing Frank Stanford who will continue serving as an adviser to the board.

Slack has been WellPoint's chief operating officer since May 2008 and was president and CEO of Bolo Systems, Inc.