Gail Chiasson, North American Editor
Digital Caddies has received a total of $2.7 million of funding on the previously announced equity capital raise being underwritten by Paulson Investments, a boutique investment bank specializing in the small and mid-cap markets.
The offering was priced at $.80 per Unit and consists of four common shares of stock; and two common stock purchase warrants. Each warrant is exercisable for one common share at $0.40 per share with a five- year term.
Funds raised are being used to continue the growth and development of The Players Network and other general working capital.
The Player’s Network, launched by Digital Caddies in late 2013, is a tablet-based course navigation and content platform installed on golf carts. To date, the system has been installed on approximately 5000 golf carts on over 60 golf courses across the country. On March 4/14, the company announced that the network was generating advertising impression inventory at a run rate of over 100 million per month, which far exceeded management’s initial expectations. This better than expected performance, immediately resulted in the announcements of agreements with several premium third-party advertising networks (Double Click by Google, Rhythm New Media, Nexage and another unannounced) who are working with Digital Caddies to fill the ad space with premium ad units and drive meaningful revenue through The Players Network.
By installing multi-functional, Internet-connected, high-resolution tablets in golf carts on golf courses across North America, Digital Caddies is building The Player’s Network as a proprietary, nationwide, interactive network. The network most notably offers national and local advertisers the ability to reach and engage with one of the most attractive and sought after demographic segments: the golfer.
Once a golf course is equipped with The Player’s Network, golfers are treated to a host of useful and engaging applications and services including GPS-based course navigation, touch screen interaction and on-course messaging. The platform can also provide the ability for golfers to notify the beverage cart of their location to receive more prompt service, keep score, set up real-time leader boards, access news, weather, sports, and other online content.
The Player’s Network tablets install on golf carts and wirelessly connect to the Web through Sprint’s nationwide 3G network, providing the golf course a broad portfolio of real-time course management tools via GPS-based cart tracking and communications. These tools enable course operators to improve the golfers’ experience and manage pace of play, increase merchandise and concession sales via real-time on-tablet promotions, and access additional revenue streams.
About Digital Caddies
Digital Caddies was founded in 2003 and established a solid reputation and customer base using a low-cost, easy-to-use and-implement GPS service for golf courses. The company has transitioned to a new business model by providing golf courses with a tablet-based navigation and content platform that is wirelessly connected to the Internet and installed on golf carts. With the Digital Caddies platform, The Players Network, course operators have the opportunity to increase revenue by promoting merchandise, food and beverage specials, or whatever they’d like through the system. Digital Caddies also can help golf course operators lower operating costs by helping them track golf cart inventory, manage driver behavior, and assist in forecasting agronomy issues.
With offices in New York, San Francisco and Portland, Paulson Investment Company is a leading national boutique investment bank focused on the small to mid-cap markets focusing on emerging growth companies with capital needs of $5 million to $45 million. Founded by Chester ‘Chet’ Paulson in 1970, it has managed or underwritten 170 securities offerings and has generated more than $1.2 billion for client companies.
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