Real Matters closes new financing

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By Ted Liu

Altus Group Limited (TSX: AIF) has announced its financial and operating results for the fourth quarter and year ended December 31, 2016.

It reported information on Real Matters in which it held 13.8% interest.

On April 1, 2016, Real Matters announced the closing of a $100 million equity round of financing at a valuation of $653 million in connection with the acquisition of Linear Title & Closing Ltd. According to a regulatory filing, Real Matters raised $59.975 million on February 24, 2016 through the issue of 14,993,750 Subscription Receipts at $4.00 per Subscript Receipt.

In its report, Altus said the transaction, which it did not participate in the financing, reduced its holding from 16.4% to 13.9%. Altus recorded a gain of $9.935 million as result of the partial deemed disposition, translating to a valuation of $397.4 million for Real Matters.

Real Matters issued 1.5 million new common shares in January 2017 at an unknown price, thus further reducing Altas’ interest to 13.8%.

It is not known if the financing was related to the board appointment of Lisa Melchior, founder and President of VERTU Capital, a newly formed late stage investment firm. If this were the case, then the financing would likely to be priced at previous round at $4.00 per share for $6 million in proceeds.

As at December 31, 2016, Real Matters reported assets of $247.216 million and liabilities of $104.133 million ($110.315M and $33.872M for 2015). For the year ended December 31, 2016, it reported revenues of $375,745 million and net loss of $11.799 million (revenues of $232.269M and net loss of $5.246M for 2015).

photo credit: Ross Sokolovski via unsplash