CPE News (2/11/2021) – Payfare Inc. has filed an amendement to its preliminary prospectus in connection with its proposed initial public offering (IPO) of common shares.
Payfare proposes to raise $60 million in gross proceeds or $69 million if the over-allotment option is exercised in full. Payfare anticipates to issue 10,000,000 and 12,000,000 post-consolidated common shares (between 11,500,000 and 13,800,000 if the over-allotment option is exercised in full) at an offering price of between $5.00 and $6.00 per share.
Payfare has applied to list its common shares on the Toronto stock Exchange (TSX) under the symbol “PAY.”
Founded by Ryan Deslippe and Keith McKenzie, Toronto based Payfare is a fintech company offering mobile banking, instant payment and loyalty-reward solutions for Gig economy workforce. The Payfare Platform has been adopted by some of the world’s largest and most well-known global Gig Platforms including Uber, Lyft and DoorDash.
Payfare currently has over 50 employees. Primarily backed by private investors from Canada, USA, Asia and Europe, Payfare’s board base of shareholders also include employees who are required to acquire common shares as part of salary reduction or through option exercise.
There is no single shareholder or entity holding 10% or more of the outstanding shares. Deslippe, McKenzie, and CEO Marco Margiotta are three largest unknown individual shareholders controlling 12,507,726 common shares, 12,640,344 common shares, and 5,148,828 common shares respectively (pre-consolidation).
CORRECTION: Prior to the completion of the offering, Payfare will have 191,450,592 common shares issued (pre-consolidation) and outstanding and approximately 30.5 million following a proposed consolidated shares, effectively valuing the company, pre-IPO, at between $153 million to $183 million at the proposed offering price range.
photo credit: Payfare