CPE News (4/15/2021) – Magnet Forensics Inc. has filed a preliminary base PREP prospectus for a proposed initial public offering (IPO) of subordinate voting shares.
The number and price of the subordinate voting shares are yet to be determined. Magnet Forensics has filed to raise $90 million in gross proceeds from the issuance of between 5,625,000 and 6,428,571 subordinate voting shares priced at between $14.00 and $16.00 per share. (all dollar figures in Canadian dollar unless otherwise noted)
Magnet Forensics has applied to list its subordinate voting shares on the Toronto Stock Exchange (TSX) under the symbol “MAGT.”
Assuming an offering price of $15, the midpoint of proposed offering price range of $14 to $16, Magnet Forensics will have 8,430,189 (or 9,330,189 if over-allotment option is exercised in full) subordinate voting shares and 31,071,825 multiple voting shares outstanding.
12,710,679 multiple voting shares will controlled, directly or indirectly, by Jad Saliba, 12,162,096 multiple voting shares, will be controlled, directly or indirectly, by Adam Belsher, and 6,199,050 multiple voting shares will be owned, directly or indirectly, by Jim Balsillie.
Founded by Saliba in 2010, Magnet Forensics, formerly JADSoftware Inc., is a developer of data analytics software used for digital forensics investigations. The company’s software solutions support a range of established use cases including criminal investigations, evidence and case management, employee and insider investigations, and litigation and legal support services. In Fiscal 2020, Magnet Forensics solutions were used by over 4,000 customers in 94 countries.
As of December 31, 2020, Magnet Forensics had 270 employees and operated four offices in Waterloo (ON), Ottawa (ON), Herndon (VA), and Singapore.
For the year ended December 31, 2020, Magnet Forensics reported US $51.3 million in revenue and US $10.6 million in net income.
Among all the notable financial indicators/metrics, Magnet Forensics paid out US $26 million in dividends to its shareholders in 2020.
photo credit: Magnet Forensics
Magnet Forensics Files Preliminary Prospectus for Initial Public Offering
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
TORONTO, April 15, 2021 /CNW/ – Magnet Forensics Inc. (“Magnet Forensics” or the “Company”) announced today that it has filed with the securities regulatory authorities in each of the provinces and territories in Canada, and obtained a receipt for, a preliminary base PREP prospectus (the “Preliminary Prospectus”) for a proposed initial public offering of subordinate voting shares (the “Offering”). The number and price of the subordinate voting shares to be sold have not yet been determined.
BMO Capital Markets and Canaccord Genuity Corp. are acting as lead underwriters and joint bookrunners for the Offering (collectively, the “Underwriters”).
The Preliminary Prospectus contains important information relating to the Offering and has not yet become final for purposes of a distribution of securities to the public. No securities regulatory authority has either approved or disapproved the contents of this news release. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or any acceptance of an offer to buy these securities in any province or territory of Canada prior to the time that a receipt for the final prospectus or other authorization is obtained from the securities regulatory authorities in each of the provinces and territories. Copies of the Preliminary Prospectus may be obtained from any of the Underwriters and will be available under Magnet Forensics’ profile on SEDAR at www.sedar.com.
The securities under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly, in the United States, except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or solicitation of an offer to buy any of these securities in any jurisdiction in which the offering or sale is not permitted.
About Magnet Forensics
Founded in 2010, Magnet Forensics is a developer of digital investigation software that acquires, analyzes, reports on, and manages evidence from digital sources, including computers, mobile devices, IoT devices and cloud services. Magnet Forensics’ software is used by more than 4,000 public and private sector customers in over 90 countries and helps investigators fight crime, protect assets and guard national security.
This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects the Company’s current expectations regarding future events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s control. Such risks and uncertainties include, but are not limited to, failure to complete the Offering and the factors discussed under “Risk Factors” in the Preliminary Prospectus. Actual results could differ materially from those projected herein. Magnet Forensics does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.
SOURCE Magnet Forensics Inc.
For further information: Neil Desai, Tel: 226-243-6337, PR@magnetforensics.com