Wishpond arranges $7-million bought deal offering
2021-01-14 16:08 ET - News Release
An anonymous director reports
WISHPOND ANNOUNCES $7 MILLION BOUGHT DEAL PUBLIC OFFERING
Wishpond Technologies Ltd. has entered into an agreement with Beacon Securities Ltd., as lead underwriter and sole bookrunner, on its own behalf and on behalf of a syndicate of underwriters including PI Financial Corp., Desjardins Securities Inc., Haywood Securities Inc. and Paradigm Capital Inc., pursuant to which the underwriters have agreed to purchase, on a bought deal basis, four million common shares in the capital of the company at a price of $1.75 per offered share for aggregate gross proceeds to the company of $7-million.
In addition, the company has granted the underwriters an overallotment option to purchase up to an additional number of offered shares equal to 15 per cent of the offered shares sold pursuant to the offering at the issue price, exercisable in whole or in part, by the underwriters, at any time, and from time to time, up to 30 days from the closing of the offering.
In consideration for the services to be offered by the underwriters in connection with the offering, the company has agreed to pay to the underwriters a cash commission equal to 7 per cent of the gross proceeds of the offering (including any proceeds derived from the exercise of the overallotment option), subject to a reduction to 3 per cent of the gross proceeds of the offering for purchasers from the company's president's list. In addition, the company has also agreed to issue to the underwriters that number of compensation options as is equal to 7 per cent of the number of offered shares sold under the offering (including any proceeds derived from the exercise of the overallotment option), subject to a reduction to 3 per cent of the number of offered shares sold to purchasers from the company's president's list. Each compensation option shall be exercisable for a period of 24 months from the closing date of the offering to acquire one common share in the capital of the company at the issue price.
The proceeds raised from the sale of offered shares under the offering are expected to be used by the company for potential acquisitions, working capital and general corporate purposes. Closing of the offering is expected to occur on or about Feb. 9, 2021, or such other date as the company and the underwriters may agree, and is subject to a number of conditions, including, without limitation, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
The offering is to be effected on a bought deal basis in each of the provinces of Canada (other than Quebec) pursuant to a short-form prospectus to be filed in each of the qualifying jurisdictions and by way of private placement to eligible purchasers resident in jurisdictions other than Canada that are mutually agreed to by the company and Beacon, provided that no prospectus filing or comparable obligation arises and the company does not thereafter become subject to continuous disclosure obligations in such jurisdictions.