CPE News (5.17.2022) – Intercap Equity Inc. has disclosed that it and its joint actors have purchased additional 1,125,000 common shares in E Automotive Inc. d/b/a E INC. (TSX: EINC) at a price of $8.00 per common share, for total consideration of $9 million.
The equity interests of Intercap are beneficially owned, controlled or directed, directly or indirectly, by Jason Chapnik, Chairman and Chief Executive Officer of Intercap.
Following the share acquisition, Intercap, together with its joint actors, beneficially owns, controls or directs an aggregate of 32,122,318 common shares, 1,021,240 share purchase warrants and 6,644 deferred share units, representing approximately 66.8% of the outstanding common shares of E INC. on a non-diluted basis and approximately 67.5% on a partially diluted basis, assuming Intercap’s exercise of its warrants and vesting of Jason Chapnik’s deferred share units.
Toronto based E INC, which goes to market under the brands EBlock and EDealer, owns a digital platform that enables automotive dealerships with access to an online wholesale auction marketplace where they can purchase or sell vehicles to other dealers, as well as access innovative software solutions to support dealers’ digital retailing and inventory management.
In November 2021, E INC completed its initial public offering on the TSX, raising $135.7 million through the issuance of 5,900,000 common shares from treasury at $23.00.
Following the closing of the IPO, Intercap beneficially owned 26,980,735 common shares (59.0% on a non-diluted basis).
photo credit: E Automative
News Release
NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES OF AMERICA
Early Warning Report Issued Pursuant to National Instrument 62‐103 Intercap Purchases Shares of E INC. (TSX: EINC)
Toronto, Ontario (May 17, 2022) – Intercap Equity Inc. (“Intercap”) and its joint actors have purchased 1,125,000 common shares in E Automotive Inc. d/b/a E INC. (“E INC.”) (TSX: EINC). This press release is being disseminated as required by National Instrument 62‐103 – The Early Warning System and Related Take Over Bids and Insider Reporting Issuers in connection with the filing of an early warning report (the “Early Warning Report”).
On May 16, 2022, Intercap purchased 1,125,000 common shares of E INC. The 1,125,000 common shares were acquired at a price of C$8.00 per common share, for total consideration of C$9,000,000. In acquiring the common shares Intercap relied on the exemption from the take-over bid rules contained in Section 4.1 – Take-Over Bids and Issuer Bids.
Prior to the acquisition, Intercap, together with its joint actors, beneficially owned, controlled or directed an aggregate of 30,997,318 common shares, 1,021,240 share purchase warrants and 6,644 deferred share units, representing approximately 64.5% of the outstanding common shares of E INC. on a non-diluted basis and approximately 65.2% on a partially diluted basis, assuming Intercap’s exercise of its warrants and vesting of Jason Chapnik’s deferred share units.
Following the acquisition, Intercap, together with its joint actors, beneficially owns, controls or directs an aggregate of 32,122,318 common shares, 1,021,240 share purchase warrants and 6,644 deferred share units, representing approximately 66.8% of the outstanding common shares of E INC. on a non-diluted basis and approximately 67.5% on a partially diluted basis, assuming Intercap’s exercise of its warrants and vesting of Jason Chapnik’s deferred share units.
The equity interests of Intercap are beneficially owned, controlled or directed, directly or indirectly, by Jason Chapnik, Chairman and Chief Executive Officer of Intercap, and accordingly Jason Chapnik is considered to be a joint actor. Intercap may, depending on market or other conditions, increase or decrease its beneficial ownership, control or direction over, or exercise its current rights to acquire, common shares through market transactions, private agreements or
otherwise.
Intercap’s head office is located at 261 Davenport Road, Suite 200, Toronto, Ontario, M5R 1K3. E INC.’s head office is located at 10 Lower Spadina Avenue, Suite 400 and Suite 500, Toronto,
Ontario, M5V 2Z2.
An early warning report will be electronically filed by Intercap with the applicable securities commission in each jurisdiction where E INC. is reporting and will be available on SEDAR at www.SEDAR.com.
Intercap Equity Inc.
James Merkur, President
Tel: (416) 473-0099
Email: james@intercap.com