Underwriting syndicate has 15% greenshoe; deal funds working capital
By Devika Patel
Knoxville, Tenn., April 17 – VersaPay Corp. said it will conduct a C$4 million private placement of units with a 15% greenshoe.
The company will sell 2,857,143 units of one common share and one half-share warrant at C$1.40 per unit. Each whole two-year warrant will be exercisable at C$2.00. The strike price reflects a 42.86% premium to the April 16 closing share price of C$1.40.
The offering is being conducted on a bought-deal basis by a syndicate of underwriters led by Haywood Securities Inc.
Settlement is expected May 7.
Proceeds will be used for working capital and general corporate purposes.
The Toronto-based financial technology company enables businesses to send and receive payments.
| Issuer: | VersaPay Corp.
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| Issue: | Units of one common share and one half-share warrant
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| Amount: | C$4 million
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| Greenshoe: | 15%
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| Units: | 2,857,143
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| Price: | C$1.40
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$2.00
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| Underwriters: | Haywood Securities Inc. (lead), Cormark Securities Inc.
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| Pricing date: | April 17
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| Settlement date: | May 7
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| Stock symbol: | TSX Venture: VPY
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| Stock price: | C$1.40 close April 16
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| Market capitalization: | C$30.84 million
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