Mackie is underwriter for sale; proceeds for growth, working capital
New York, Jan. 13 - VersaPay Corp. said it has agreed to sell C$5 million of units in a bought-deal private placement.
Mackie Research Corp. will lead a syndicate of underwriters. As payment, the banks will receive a commission of 7% of the offering and warrants equal to 7% of the units offered. These broker warrants will be exercisable for one unit at the issue price of C$1.20 for 24 months.
In the financing, VersaPay will sell 4,167,000 units at C$1.20 each. The units will be made up of one common share and half a share purchase warrant. Investors will be able to exercise the warrants at a price of C$1.50 per share for 24 months following closing.
The underwriters will have a greenshoe that will allow them to increase the offering by 15%.
Proceeds will be used to fund the growth of VersaPay's eInvoice Solutions division and for general corporate and working capital purposes.
The Toronto-based financial technology company enables businesses to send and receive payments.
| Issuer: | VersaPay Corp.
|
| Issue: | Units of stock and half-share warrants
|
| Amount: | C$5,000,400
|
| Units: | 4,167,000
|
| Greenshoe: | For 15%
|
| Price: | C$1.20
|
| Warrants: | For 0.5 of a share per unit
|
| Warrant strike price: | C$1.50
|
| Warrant expiration: | 24 months
|
| Underwriter: | Mackie Research Corp. (lead)
|
| Pricing date: | Jan. 13
|
| Stock symbol: | TSX Venture: VPY
|
| Stock price: | C$1.37 at close Jan. 10
|
| Market capitalization: | C$22.36 million
|
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