Magor Communications will start trading under the symbol “MCC” on the TSX Venture Exchange on Friday after receiving a green light from regulators.
“As of (this) morning, Magor becomes a tradable entity,” said Ken Davison, the company’s vice-president of marketing, in an interview.
Founded in 2007, Magor aims to make videoconferencing as easy as bumping into a colleague and striking up a casual conversation.
Named one of OBJ’s Startups to Watch in 2011, the 30-employee company is betting on a major shift in the videoconferencing market to software-based solutions from being hardware-centric.
Primarily targeted at government and health-care workers, its flagship product allows users to share control of desktops, applications, whiteboards and other materials. At the same time, the company says it is eliminating traditional obstacles to videoconferencing such as high infrastructure costs as well as latency and interoperability headaches.
Last June, Magor announced a proposed merger with Toronto-based capital pool company Biovest Corp. (TSX:V-BVC.P) that involved Magor shareholders swapping their securities for Biovest shares.
That qualifying transaction closed Thursday, at which point the combined entity changed its name to Magor Communications Corp., adopted the new stock symbol and announced it had raised $5,900,303 through the sale of 10,000,514 common shares at 59 cents each.
“We went out to the market over the last four months and basically told the story about where Magor is going,” said Mr. Davison.
He declined to publicly share details of that story this week, saying several announcements are planned for the coming months.
The company previously stated it intends to commercially launch a cloud-based video collaboration solution within the first three months of 2013. In the second quarter, Magor expects to start licensing software for Windows, Apple OS X, Apple OS and Android, allowing it to be incorporated into the products of third-party device manufacturers, according to a prospectus filed with regulators.
In its most recent fiscal year, Magor recorded a loss of $5.19 million on revenues of $1.88 million, according to its prospectus. The company improved its bottom line results over 2011, when it lost $7.35 million on sales of $1.92 million.
Magor is chaired by Terry Matthews, arguably Ottawa’s most successful tech entrepreneur who founded Mitel, Newbridge Networks and Wesley Clover, among other firms. Magor’s president and CEO is Michael Pascoe, the former CEO of Ottawa-based Meriton Networks who led its sale to Xtera Communications.
Magor’s board also includes Jerry Edgerton, John MacDonald, Scott Marshall, Michael Mueller, Dan Rusheleau, Steve Spooner, Calvin Stiller and John Watts.