Insight to Clearco US $60M Series D

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By Ted Liu

On October 4, 2023, Clearco announced completion of various actions to recapitalize the company.

Clearco raised US $60 million in Series D as part of the recap. It did not clarify that the Series D actually included the conversion of approximately US $25 million debentures issued in 2022 into US $30 million Series D shares.

Close to 3 billion Series D preferred shares, priced at US dollar equivalent of CDN $0.0285, were issued. To put the dilutive nature into perspective, Series C was priced at US dollar equivalent of CDN $34 to $43 per share. Without any adjustment to Series A to C shares, Series D would have rendered previously issued shares almost worthless.

The Series D round was led by Inovia Capital and Founders Circle Capital and joined by a large group of US investors.

Out of Clearco board of directors were Michele Romanow (co-founder), Dan Nova (Highland Capital Partners), Rajen Ruparell (investor), Ann H. Lamont (Oak HC/FT), Bruce Sewell (board director), and Santi Subotovsky (Emergence Capital).

Karamdeep Nijjar (Inovia Capital) and Mike Jung (Founders Circle Capital) along with Andrew D’Souza (co-founder) and Andrew C. Curtis (new CEO) made up of Clearco newly re-constituted board.

photo credit: Clearco