December 9, 2006 – (HOSTSEARCH.COM) – Web hosting provider Hostopia.com (http://www.hostopia.com) has announced that it has issued an additional 630,000 shares of its common stock in relation to its initial public offering. Net proceeds from Hostopia’s exercise of an “over-allotment option”, will be approximately C$3.53 million, after fees.
In total, including the over-allotment shares, Hostopia has sold 4,830,000 shares of common stock at C$6.00 per share for gross proceeds of approximately C$29 million.
Hostopia intends to use the net proceeds of its offering to invest in its application delivery platform, expand its portfolio of web services and its UK market presence, and for “general corporate purposes”. A final prospectus has been filed with applicable Canadian securities authorities.
Hostopia provides web services to small- and medium-sized businesses. The company provides customers with the technology, infrastructure, and support services to enable them to offer web services, while saving them research and development as well as capital and operating costs typically associated with the design, development, and delivery of web services.
