Company sells 34.5 million units of one share and a half-share warrant
By Devika Patel
Knoxville, Tenn., Aug. 18 – DealNet Capital Corp. said it completed a C$13.8 million private placement of units. The deal priced for C$12 million with a C$1.8 million greenshoe on July 30 and was conducted on a best-efforts basis by a syndicate of underwriters led by Paradigm Capital Inc.
The company sold 34.5 million units of one common share and one half-share warrant at C$0.40 per unit on a bought-deal basis. Of the units, 4.5 million were part of the fully exercised greenshoe.
Each whole warrant is exercisable at C$0.50 until Feb. 18, 2017. The strike price reflects a 9.89% premium to the July 29 closing share price of C$0.455.
Proceeds will be used for underwriting equity reserves for the funding of heating ventilation and air conditioning leases and financing contracts, and for working capital and general corporate purposes.
Toronto-based DealNet helps companies communicate with consumers and also offers home improvement financing.
| Issuer: | DealNet Capital Corp.
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| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$13.8 million, including C$1.8 million greenshoe of 4.5 million units
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| Units: | 34.5 million
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| Price: | C$0.40
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Feb. 18, 2017
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| Warrant strike price: | C$0.50
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| Agent: | Paradigm Capital Inc. (lead)
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| Pricing date: | July 30
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| Settlement date: | Aug. 18
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| Stock symbol: | TSX Venture: DLS
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| Stock price: | C$0.455 at close on July 29
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| Market capitalization: | C$57.02 million
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