Mundo Inc. has reportedly withdrawn its proposed initial public offering of 5,000,000 common shares by way of treasury offering at $6.00 per share for gross proceeds of $30 million. The company has yet to file with securities regulatory authorities on the withdrawal.
Mundo had initially planned to raise as much as $60 million at a price between $8.50 to $9.50 per share.
The offering would have consisted of $30 million treasury offering and a secondary offering, if the over-allotment option were fully exercised, for $4.5 million to the selling shareholders which include Mansfield International Trade Ltd. (David Baazov/Ahaka Capital), Four Kids Investment Fund LLC, Stetson Capital Management LLC, ATG Capital LLC, Melechdavid Inc., Barry Honig, John O’Rourke and Jonathan Honig.
In connection with a pre-IPO reorganization, certain shareholders of Mundo’s predecessor received a return of capital of $20 million, evidenced by a non-interest bearing promissory note, on their special shares or common shares of Customer Acquisition Network (Canada) Inc.
Mundo would have 24,605,697 common shares will be issued and outstanding if the IPO were to be completed.
Canaccord Genuity Corp. and Cormark Securities Inc. acted as co-lead underwriters and joint bookrunners. Gowling WLG (Canada) LLP and Norton Rose Fulbright Canada LLP were the legal counsel to Mundo and the underwriters respectively.
UPDATE: Mundo officially withdrew its Amended Preliminary Long Form Prospectus dated June 16, 2017 on July 31, 2017.
photo credit: Mundo