CPE News (2.16.2022) – BuildDirect.com Technologies Inc. (TSX-V: BILD) has closed a secured debt financing pursuant to which it issued, via its wholly owned subsidiary BuildDirect Operations Limited, secured notes to Pelecanus Investments Ltd., Lyra Growth Partners Inc. and Beedie Investments Ltd. in an aggregated amount of US $3 million.
Pelecanus, Lyra, and Beedie Capital are insiders by virtue of holding 40.2%, 12.9% and 11.4% respectively of the issued and outstanding common shares. Mohr Davidow Ventures (MDV), the only other 10%+ shareholder (~16.4%), is not part of the financing.
BuildDirect intends to use net proceeds to continue to advance BuildDirect’s strategy and for general working capital purposes.
Vancouver based BuildDirect is an innovative technology platform for purchasing and selling building materials online.
In August 2021, Pelecanus, Lyra, Beedie and MDV backed BuildDirect.com Technologies Inc. (private) completed going-public transaction by way of qualifying transaction by VLCTY Capital Inc. As part of the transaction, BuildDirect raised $20.6 million by way of subscription receipts financing priced at $5.75.
BuildDirect stock closed at $0.80 on February 15, 2022.
photo credit: BuildDirect
News Release
BuildDirect Closes Secured Debt Financing for US $3 Million
VANCOUVER, BC, Feb. 15, 2022 /CNW/ – BuildDirect.com Technologies Inc. (TSXV: BILD) (“BuildDirect” or “Company”), announces the closing of a secured debt financing pursuant to which it issued, via its wholly owned subsidiary BuildDirect Operations Limited, secured notes to Pelecanus Investments Ltd. (“Pelecanus”), Lyra Growth Partners Inc. (“Lyra”) and Beedie Investments Ltd. (“Beedie Capital”) in an aggregated amount of US $3 million (the “Loan”).
Terms of the Loan include the following:
The Loan matures on July 2, 2022;
The Loan bears interest at an annual rate of 12% compounded monthly and is payable upon repayment of the Loan; and
A commitment fee equal to 1% of the Loan is payable upon repayment of the Loan.
The net proceeds from the Loan will be used to continue to advance BuildDirect’s strategy and for general working capital purposes of the Company. The TSX Venture Exchange has been provided notice of the Notes under TSXV Policy 5.1 – Loans, Loan Bonuses, Finder’s Fees and Commissions.
Pelecanus, Lyra, and Beedie Capital are insiders by virtue of holding 40.2%, 12.9% and 11.4% respectively of the issued and outstanding common shares of the Company on a partially diluted basis. As a result of the foregoing, the secured notes issued to the above entities constitutes a related party transaction as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company relied upon the exemptions from the formal valuation and minority shareholder approval requirements in sections 5.5(b) – Issuer not Listed on Specified Markets and 5.7(1)(a) – Fair Market Value Not More Than 25 Per Cent of Market Capitalization, respectively of MI 61-101.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About BuildDirect
BuildDirect (TSXV: BILD) is an innovative technology platform for purchasing and selling building materials online. The BuildDirect platform connects homeowners and home improvement professionals in North America with suppliers and sellers of quality building materials from around the world, including flooring, tile, decking and more. BuildDirect’s growth, proprietary heavyweight delivery network, and digital reach have served to solidify its role as a ground-breaking player in the home improvement industry. For more information, visit www.BuildDirect.com.
Forward-Looking Information
This press release contains statements which constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions. These statements reflect management’s current beliefs and expectations and are based on information currently available to management as at the date hereof. Forward-looking statements involve significant risk, uncertainties and assumptions.
Forward-looking statements in this press release may include, without limitation, statements relating to BuildDirect’s use of the proceeds from the Loan and BuildDirect’s ability to repay the Loan.
Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Among those factors are changes in consumer spending, availability of mortgage financing and consumer credit, changes in the housing market, changes in trade policies, tariffs or other applicable laws and regulations both locally and in foreign jurisdictions, availability and cost of goods from suppliers, fuel prices and other energy costs, interest rate and currency fluctuations, retention of key personnel and changes in general economic, business and political conditions. These forward-looking statements may be affected by risks and uncertainties in the business of the Company and general market conditions, including COVID-19.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements.
Although the forward-looking statements contained in this press release reflect the Company’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. There may be other risks, uncertainties and factors that cause results not to be as anticipated, estimated or intended and such changes could be material. These forward-looking statements are made as of the date of this press release, and BuildDirect assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
Contact information: Investor Relations, Ashley Nuell, ir@builddirect.com
SOURCE BuildDirect.com Technologies Inc.