SofTech, Inc. announced that it has received $2.70 million in funding from Prides Crossing Capital, L.P.
July 09, 2013 at 12:00 am
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SofTech, Inc. (OTCPK:SOFT) announced a private placement of loan from new investor Prides Crossing Capital L.P., a fund managed by Prides Crossing Capital for gross proceeds of $2.70 million on May 10, 2013. The loan carries a coupon of 14% per annum paid in arrears on a quarterly basis throughout the life of the loan and would mature on May 1, 2016. The company will make quarterly principal payments of $135,000 beginning from October 1, 2014. Remaining principal balances will be due and payable on May 1, 2016.
On July 9, 2013, SofTech, Inc. closed the transaction. The company issued 25,000 warrants to purchase common shares of the company at an exercise price of $1 per share and would mature on July 9, 2020. The company may reimburse the expenses of the investors. As part of the transaction, Sean W. Gilligan of Gesmer Updegrove LLP will act as the legal counsel to Prides Crossing Capital GP, LLC. Matthew McTygue of Edwards, Wildman & Palmer LLP will act as legal counsel to the company.
SofTech, Inc. is engaged in the development, marketing, distribution and support of computer software solutions that enable companies to manage the lifecycle of their products from conception through design and manufacture, to service and disposal. The Company's service offerings include consulting, training and discrete engineering services. These solutions include software technology offerings for computer aided design (CAD), and product data management (PDM) and collaboration technologies. In addition, the Company offers a technology platform that allows data exchange between various third party technology offerings known as the Company's connector offering. The Company's products include ProductCenter, Connector Platform, HomeView and CADRA. The Company operates in the United States and Europe and has sales and customer support offices in the United States and Italy. The Company also operates through re-sellers in North America, Europe and Asia.
SOFTECH, INC. 
