Cannabinoids – Investors See Green
Cannabinoids – Investors See Green
Momentum Public Relations
The current debate in Canada around legalizing or decriminalizing the use of marijuana is highlighting potential for mainstream investors to capitalize on opportunities being created by companies who are pioneers in developing medical products made from cannabis. The recent election of the Trudeau government has triggered anticipation that important reforms and regulatory changes will be introduced to fulfill promises that were included in the Liberal Party’s platform.
Scientists today have a better understanding of how the various molecules and compounds in cannabis trigger a response in human beings. This is permitting new classes of pharmaceutical products to emerge offering investors opportunities that eclipse the returns that can be generated in some of the more mature pharmaceutical segments.
InMed Pharmaceuticals (IN:CSE) http://www.inmedpharma.com is a leader in a growing segment that is seeking to identify new bioactive compounds in cannabis plants that may interact with certain genes that cause specific diseases or medical conditions. Their pioneering research is opening the door to new therapies that meet the needs of patients who suffer from a variety of illnesses including debilitating dermatological conditions and ocular nerve disorders like glaucoma. These new therapies are expected to generate substantial returns for investors.
Marijuana, in its many different forms, contains a variety of active ingredients. One of these ingredients, perhaps the most well known entity, is a cannabinoid known as tetrahydrocannabinol or THC. This is the primary psychoactive compound of cannabis. THC was first synthesized by Dr. R. Mechoulan at Jerusalem University in 1964. Since that time researchers have identified and isolated at least 85 different cannabinoids from cannabis, each with its own effects. Opportunities to investigate these effects and produce useful therapies is creating a potential pipeline of commercially viable pharmaceutical products as a result of the evolving public perception, advances in scientific knowledge and changes in laws and regulations
For most of the 20th century, marijuana was classified as an illegal drug in most jurisdictions in North America and Europe. It’s use, in a number of forms, was partially revived in the 1960’s as part of a counter cultural movement. Despite a well documented history of medical applications that date back to 2500 BC, the more recent mainstream public perception of cannabis was limited to publicity that highlighted the various negative consequences of smoking marijuana. This perspective, and the laws that were enacted that criminalized the possession of quantities of cannabis in any form, created an environment that impeded serious scientific investigation of its potential medicinal properties.
The use of cannabis in medicine is not a recent phenomenon. It actually pre-dates recorded history. There is clear evidence that a number of medicinal properties were well understood by Chinese emperors, Egyptian Pharaohs and Greek Philosophers. It was used by physicians in ancient times to treat ailments as diverse as glaucoma, gout, indigestion and anxiety. Eventually a debate about its use emerged among physicians. Around 900 AD two highly respected Islamic doctors had widely disparate opinions on the usefulness and efficacy of marijuana.
Eventually cannabis emerged in North America, primarily in the form of hemp. Two of the founding fathers of the United States of America, George Washington and Thomas Jefferson, both highly curious scientist-farmers, carefully documented experiments that they conducted in growing hemp and investigating a variety of medicinal uses for it.
At the beginning of the 20th century there was a movement to regulate and classify any product that made a medical claim. In 1906 President Teddy Roosevelt signed the Wiley Act into law. This legislation became the foundation for future food and drug related regulation. The objective of politicians and the medical community was to regulate or ban products that made health related claims but lacked any scientific credibility or were proven to be dangerous.
Marijuana, and its chemistry, was not well understood in that era and efforts were made to determine if it had helpful medicinal properties or if it was highly addictive. By the 1930’s there was considerable discussion around marijuana. In 1940 a committee of medical practitioners was established by the state of New York to study its use and effects. This was known as the “LaGuardia committee on the use of marihuana” (note the different spelling). The report that was produced in 1944 did not provide a clear recommendation on restricting its use. It did suggest that there was no evidence that that it was addictive or led to other more serious addictions.
“The practice of smoking marihuana does not lead to addiction in the medical sense of the word. The use of marihuana does not lead to morphine or heroin or cocaine addiction.” – LaGuardia committee report on the use of Marihuana (1944)
Nonetheless, the fact that cannabis was not treated as a legal compound led to an underground trade for recreational purposes. This discouraged investigation by medical researchers within the scientific community throughout most of the late 20th century. However, this is changing rapidly in the 21st century.
With accelerated scientific knowledge fueled by technology and communication, cannabinoid science is emerging into the mainstream. Scientists and medical professionals are already participating in trials that are being conducted to test new compounds from cannabinoids. Additional medical advances cannot be not far behind. Additionally, the anticipated change in the regulatory environment can only further fuel opportunities.
- Published in Blog, InMed Pharmaceuticals, Medical Marijuana
Follow the Money: The Rise of Mobile Technology
Follow the Money: The Rise of Mobile Technology
Momentum Public Relations
The phrase “follow the money” has been used to suggest that finding the truth behind a political scandal can be achieved by investigating a series of financial transactions that will point directly to the main perpetrators. However, this phrase can have a much more positive connotation. If investors are seeking a good bet (and who isn’t) following the money often leads to opportunities for superior returns. Financial technology, or fintech, is an opportunity that needs to be explored in 2016.
Business segments that are profitable are frequently suitable targets for disruptive startups. This situation is most certainly the case in the Canadian financial sector. The major players are justifiably proud of their heritage, stability, and profitability. The worldwide financial crisis of 2008 was barely a blip on the radar screen of Canada’s financial institutions. They did not suffer a liquidity crisis. Profits soared again post-2009. The major Canadian banks recorded net profits 31.7 billion dollars in 2014, a slight increase from the total of 29.2 billion in 2013. The trend continued in 2015.
So why are the big banks, and a wide variety of other related financial services companies, preparing for waves of technology based disruption in 2016 and beyond? Simply stated, their profitability and relatively stable position exist in combination with an absence of agility. Large legacy companies have a hard time becoming agile despite rousing speeches from the C-suite. The opportunity for startups that bring new technological approaches to financial management is enormous because the potential audience is large. The early adopting customers alone, 2-3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the market, can generate revenue and profits that are too large to be ignored. Groundbreaking financial technologies are increasingly robust, and they are beginning to change the expectations and demands of consumers. Consequently, there is a high degree of likelihood that the entire sector is about to undergo a redefinition. Smart investors will follow the money and profit from the disruption!
Several emerging realities are at the core of the revolution in financial technology. There is an abundance of startups challenging the accepted norms of this highly regulated and traditional industry. The threat of disruptive entrants is forcing cautious organizations like banks and insurance companies to change or adapt their processes at a speed that may prove to be uncomfortable. Additionally, these startups are creating new products and services that are defining new market spaces.
Expect two significant financial technology trends to dominate the conversation in 2016. They include the need for increased data security coupled with a rise of mobile technology. Both trends have significant implications for the financial sector given that mobile transactions, while still nascent, are likely to grow exponentially over the next five years.
Entrepreneurs and investors have been quick to seize on this movement. Markets like Japan and Korea provide some early indications of how the field may sort itself out. Yes, the first wave of adoption has been dominated by the under 30-year-old cohort, but this is just the beginning of the wave. The fact is that over 2/3 of smart phone users have more than one shopping app on their device. However, there is a perception that using them is either a hassle or potentially not secure. Soon everyone’s grandma will use these apps along with a digital wallet. The challenge, for the moment, is to ensure that this technological change is easy to use and 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} secure. Most experts contend that the development of blockchain is a seminal event that will have broad implications for both challenges in managing mobile transactions. It has certainly grabbed the headlines and is celebrated as the functional dimension that makes Bitcoin usage possible. However, the Bitcoin phenomenon is likely more sizzle than steak. The real opportunity for blockchain lies in its potential to transform the way all financial transactions occur.
What is “a blockchain”? It is just a record, or ledger, of digital events. It is openly shared among many different parties and can only be updated by consensus of a majority of the participants in the system. And when data or information has been entered it can never be erased. It makes data manipulation and transactional fraud close to impossible because of the disparate and shared nature of the data. The result of secure transactions is that they lead to improved functionality and drive more usage. If the process is totally secure and incredibly easy why not use it?
Increasingly, everything is connected, and every connected device is becoming a commercial device. This connectedness is setting up an opportunity to develop superior tools to protect and secure the information that is being sent and stored. Financial institutions have historically been reluctant to make process changes because of legitimate security concerns and a variety of regulatory imperatives. Many of the things that look like changes have merely involved automating long-standing manual processes. Blockchain could change the paradigm completely. Once it is fully commercialized, it will provide opportunities to the financial sector. Startups are embracing this technology. They are seeking to invade traditional markets by offering new options and services that banks have been hesitant to embrace.
Several innovative fintech start-ups have been trumpeting marketing messages that threaten the existence of traditional banks. However, many of them are relying heavily on underlying infrastructure that banks provide to conduct their business. Some are beginning to operate as banks themselves and are free of dependency on other players. Building independent structures is a slow and expensive process, but the potential rewards may justify the strategic risk. In the meantime, the big banks are sending signals of “willingness to partner” with startups that have begun to carve into their traditional territory with new innovative products and services.
How does this impact the savvy investor? Just follow the money! The most likely scenario for many disruptive startups in fintech is that success and growth will result in an opportunity for their shareholders to cash out by being acquired and merged into the operations of existing financial institutions. Yes, there will be some fintech startups that won’t make it, and there will be some that emerge as stable standalone businesses. 2016 looks to be a watershed year in fintech – one to watch carefully for sure.
- Published in Blog, Business, Mobi724 Global Solutions
Equitas Resources (EQT:V) Enters Agreement to Acquire Revenue Generating Gold Producer
Equitas Resources Corp. (TSXv: EQT) (FSE: T6UN) (US: EQTRF) (“Equitas” or the “Company”) is pleased to announce that it has entered into a binding letter agreement dated effective January 6, 2016 to acquire (the “Transaction”) all of the issued and outstanding securities of Alta Floresta Gold Ltd. (“Alta Floresta Gold”).
Alta Floresta Gold is a private British Columbia company which holds approximately 60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of Alta Floresta Gold Mineração Ltd. (“Alta Floresta Mineração”). Alta Floresta Mineração holds six gold properties, and four production licences, over 184,410 hectares of land in the Mato Grosso, and Para states of the Federative Republic of Brazil. Licence areas are highly prospective, with previous artisanal mining activity. Alta Floresta Mineração is focused on expanding the production activities and defining additional gold resources at its Cajueiro Project (the “Cajueiro Project”).
“In Alta Floresta Gold, we have identified an excellent opportunity that will allow us to leverage its current small scale, low cost, gold production into a much larger operation in the near future.” stated Kyler Hardy, President and Director of Equitas. “By incorporating the highly skilled senior management team of Alta Floresta Gold into Equitas, we gain an experienced South American operating team that will advance the Cajueiro Project. Following closing of the transaction, Equitas will be a stronger company with quality gold and nickel assets as well as cash flow. This transaction is in line with our corporate strategy to acquire exceptional property holdings in highly prospective and proven districts. Equitas will also continue an aggressive exploration program on its highly prospective Garland nickel property in the Voisey’s Bay district in Labrador, Canada.”
“We are very pleased to finalise this letter agreement with Equitas, commented Chris Harris, Executive Chairman & Director of Alta Floresta Gold. “This transaction underlines the core value of the Alta Floresta portfolio and especially of our fast-track gold development target at Cajueiro which is already in production. With the depth of our combined management team, we stand poised to create strong value for shareholders as well as to bring employment and business to Brazil. We intend to build on our in-house portfolio development pipeline, by acquiring selected value accretive neighbouring gold resources in Brazil to build a strong, cash flow generating gold junior with attractive growth prospects.”
The Cajueiro Project
The Cajueiro Project encompasses 44,768 hectares and is located 95 kilometers north of the city of Alta Floresta in the Federative Republic of Brazil. The project straddles the border of the Para and Mato Grosso states in the prolific Juruena Belt of Brazil.
To date, 48 drill holes for a total of 11,292 metres have tested four zones: Marines, Baldo, Matrincha, and Crente. At the Crente zone, the work has outlined an indicated and an inferred resource, while inferred resources were calculated for the Marines, Baldo and Matrincha zones. All of these zones have near surface oxide potential expansion. Exploration over the last five years has identified five further anomalies within the property package that have similar surface expression to the Crente target.
A resource estimate was prepared by Gustavson Associates of Boulder, Colorado in accordance with the definitions in the National Instrument 43-101 (“NI 43-101”) in a report titled “NI 43-101 Technical Report on Resources, Cajueiro Project States of Mato Grosso and Para, Brazil effective March 22, 2013.
An updated NI 43-101 Technical Report is being prepared for Equitas and will be filed on www.sedar.com within the time periods required under NI 43-101 and will be available on the Company’s website.
The details of the NI 43-101 Technical Report are summarized below:
Table 1. Indicated and Inferred Resources at Crente zone.
Indicated Resources |
Inferred Resources |
||||||
Cut off Grade (g/t) |
Tonnes (000s) |
Gold (g/t) |
Contained Oz Au (000s) |
Cut off Grade (g/t) |
Tonnes (000s) |
Gold (g/t) |
Contained Oz Au (000s) |
0.5 |
4,529 |
1.2 |
168.0 |
0.5 |
3.025 |
1.0 |
100.3 |
0.3 |
7,400 |
0.9 |
203.0 |
0.3 |
5,261 |
0.8 |
127.4 |
Table 2. Inferred Resources at Baldo, Matrincha and Marines zones.
Inferred Resources |
||||
Zone |
Cut off Grade (g/t) |
Tonnes (000s) |
Gold (g/t) |
Contained Oz Au (000s) |
Baldo |
0.3 |
1,411 |
1.3 |
61.1 |
Matrincha |
0.3 |
1,565 |
1.1 |
52.9 |
Marines |
0.3 |
1,167 |
0.7 |
27.2 |
Oz Au = Gold-equivalent ounces.
All quantities are rounded to the appropriate number of significant figures; consequently sums may not add up due to rounding. All resources reported above for the Baldo, Matrincha and Marines zones are inferred resources. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserves.
Alta Floresta Gold started processing alluvial gold mineralization in the Baldo zone in June 2015 with modest gold production to date.
Equitas Resources intends to embark on a three phase development plan at the Cajueiro Property. First, the Company plans to install a small gravity plant to process the saprolite mineralization at the Baldo zone.
Once permits and the necessary supply agreements are in hand, the second phase of the plan envisions the construction of a carbon-in-leach plant between the Baldo and Crente zones. These two zones are less than 1 km apart. Initial metallurgical test work indicates that in excess of 85{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} gold recovery can be achieved through gravity separation and cyanide leaching.
The third phase would be to increase production at the Cajueiro Project under a full production licence. The Company expects that this could be funded through operating cash flow.
Everett F. Makela, P. Geo., VP Exploration for Equitas Resources Corp., a Qualified Person as defined by National Instrument 43-101, has approved disclosure of the technical information in this news release.
Transaction Summary
A summary of the transaction is as follows:
- Equitas will acquire 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding shares of Alta Floresta Gold from its security holders in exchange for that number of Equitas shares that is equal to 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding Equitas shares at closing.
- Upon closing, (i) Alta Floresta Gold will become a wholly-owned subsidiary of Equitas, and (ii) former shareholders of Alta Floresta Gold will hold approximately 50{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the outstanding shares of the Company (without giving effect to any issuances of Equitas shares prior to or concurrent with closing). No new insiders or control persons will be created as a result of the Transaction.
- Each unexercised stock option in Alta Floresta Gold will be exchanged for or replaced with approximately 1.5 options of Equitas at a price of $0.15 per share.
- Equitas Resources will segregate up to USD$1 million to be applied on closing exclusively to advance the Alta Floresta Gold projects. Subject to TSX Venture Exchange (the “Exchange”) approval, US$300,000 of this will be advanced to Alta Floresta Gold following completion of Equitas’ technical due diligence and licence review.
- Prior to closing, Alta Floresta Gold will use commercially reasonable efforts to become the legal and beneficial owner of 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of the issued and outstanding equity interests of Alta Floresta Mineração. Alta Floresta Gold invested in Alta Floresta Mineração in June 2014, under an investment agreement (the “Underlying Investment Agreement”) with ECI Exploration and Mining Inc. (“ECI”), and other ECI related parties, all of which are at arm’s length to Alta Floresta Gold. Pursuant to the Underlying Investment Agreement, Alta Floresta Gold has the right to farm-in to Alta Floresta Mineração up to a 70{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} equity interest (currently approximately 60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} held), and has taken operational control of the Alta Floresta Mineração business and board. Alta Floresta Gold has the right of first refusal on any sale of the remaining ECI interest, and has the ability through further un-matched investment, to dilute the ECI interest down to a level (10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}) at which the ECI interest would convert to a 1.25{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} NSR.
Alta Floresta Gold will have net positive working capital at closing of the Transaction. Equitas will be assuming long term deferred license fees of approximately US$38,000 (as at September 30, 2015) payable by Alta Floresta Gold.
The proposed Transaction is subject to a number of terms and conditions, including but not limited to (i) the entering into by the parties of a definitive agreement with respect to the Transaction (such agreement to include representations, warranties, conditions and covenants typical for a transaction of this nature), (ii) the absence of any material adverse change in either party, (iii) the completion of satisfactory due diligence investigations by both parties, (iv) the approval of the directors of each of the Company and Alta Floresta Gold, (v) the completion by Equitas of a private placement generating minimum proceeds of $2,500,000 and (vi) the approval of the Exchange.
The parties have agreed that during the period from signing the letter agreement through to execution of the definitive agreement, each of the parties will continue their respective operations in the ordinary course and will not solicit or accept alternative offers. Subject to satisfactory completion of due diligence, the parties expect to execute the definitive agreement by January 31, 2016 and have agreed to use their best efforts to complete the Transaction by February 19, 2016 or as soon as reasonably practicable thereafter.
The proposed Transaction will constitute a Reviewable Transaction pursuant to the policies of the Exchange. The proposed Transaction is an arm’s length transaction. The Company will not be required to obtain shareholder approval of the Transaction.
No finder’s fees are payable in connection with the Transaction.
Further details concerning the Transaction will be announced if and when a definitive agreement is reached.
Proposed Management of the Company
Subject to Exchange approval, on completion of the Transaction, it is proposed that the new management be constituted from the two entities, with the new board of directors and technical management team being as follows:
Kyler Hardy – Chairman and Director
Mr. Hardy is a seasoned and successful entrepreneur who has been involved in mineral exploration and the mining industry for over 15 years. He is a founder and former CEO of a geosciences and logistics management business which specializes in the exploration and development of projects in remote areas. Mr. Hardy is experienced in project generation, exploration management, logistics, raising capital, corporate development and developing alliances and strategic partnerships.
Chris Harris – President, Chief Executive Officer and Director
Mr. Harris has over 29 years’ experience in mining finance, energy, and commodities with multiple principal investments and director roles and is a Fellow Chartered Accountant (FCA). After qualifying at Ernst & Young in London, Mr. Harris moved to CIBC Wood Gundy in 1991, becoming Director Project Finance in the Energy & Utilities sector. After three years at Enron Europe where he co-ran the European Commodity Finance business, Mr. Harris moved to BHP Billiton to run a global mining merchant investment business for eight years. He then spent three years heading upstream investments for GMI Resources, a shipping hedge fund. Mr. Harris is co-founder of Alta Floresta Gold.
Alan Carter – Director
Dr. Carter has 30 years of experience in the minerals exploration industry. He spent seven years working for Rio Tinto Corp. in South America and the United Kingdom. Dr. Carter joined Billiton Plc in 1998, and in 2000 moved from Lima, Peru to Vancouver. Following the merger of Billiton with BHP, he assumed the role of Manager, Business Development within the BHP Billiton Exploration Group. He was the Chief Operating Officer of Peregrine Diamonds Ltd. from mid-2004 to late 2006. Dr. Carter is currently CEO and Director of Magellan Minerals Ltd, and a director of Peregrine Diamonds Ltd. He has a B.Sc. degree in Geology from the University of Nottingham, and a Ph.D. from the University of Southampton, U.K.
David Hodge – Director
Mr. Hodge, President and Director of Zimtu Capital Corp, has an extensive background in business that includes over 20 years of experience in the management and financing of publicly-traded companies. Mr. Hodge has been a director of mineral exploration companies since 1986, and some of his many strengths lie in leadership and imaginative direction. His success has been founded on a belief in team building, consultation and strong leadership, as well as a willingness to incorporate expert advice into a viable working enterprise.
Michael Bennett – Technical Advisor, Director and Officer of Alta Floresta Mineração
Mr. Bennett is a senior geologist with 30 years of experience in the minerals exploration industry (24 of these years in South America). He is currently General Manager for the Brazil Manganese Corp in Rondonia Brazil, and was VP Exploration of ECI Exploration and Mining Inc. from 2009 to 2014. He has been responsible for 3 gold discoveries in South America: Bolivia – Puquio North (0.5Moz); Brazil – Coringa (1.1Moz), and Cajueiro.
Everett Makela – VP of Exploration
Mr. Makela brings over 30 years of exploration experience to the team. During a career with Inco and Vale, Everett held roles of increasing responsibility in settings ranging from grassroots evaluations to near-mine resource definition. He excels at target generation, design and implementation of exploration programs, and the creation of joint venture and alliance opportunities. Everett holds an Honours Bachelor of Science in Geology from Laurentian University, and is a member of APGO, PEGNL, PDAC and SEG. He retired from Vale as Principal Geologist, North America in 2012.
For further information please visit the Equitas Resources website at: www.equitasresources.com.
- Published in Equitas Resources, News Home
Aurora Cannabis increases financing to $4.5-million
Aurora Cannabis (ACB:CSE) Increases Financing to $4.5-million
Due to strong response from investors, Aurora Cannabis Inc.’s non-brokered private placement of units has been oversubscribed, and, as a result, the private placement has been increased from $3.5-million to a maximum of $4.5-million.
As previously announced, the company closed the first tranche of the private placement consisting of 3,250,755 units of the company at a price of 53 cents per unit for gross proceeds of $1,722,900.
All other terms of the private placement remain the same as set forth in the company’s news release dated Dec. 30, 2015. Each unit consists of one common share and one transferable common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share of the company at a price of 66 cents per common share for a period of two years. The expiry date of the warrants may be accelerated by the company if its shares trade above $1.25 for 10 consecutive trading days.
We seek Safe Harbor.
- Published in Aurora Cannabis, News Home
Dealnet Announces Closing of Debenture Offering of Up to $100 Million
TORONTO, ONTARIO–(Marketwired – Jan. 13, 2016) – Further to its press release of December 21, 2015, Dealnet Capital Corp. (“Dealnet” or the “Company”) (TSX VENTURE:DLS) is pleased to announce that its wholly owned subsidiary, One Dealer Inc., has closed a secured debenture offering and issued an initial $10 million debenture (the “Debenture”) with capacity to issue up to $100 million under the established structure.
The versatile structure of the financing allows for the warehousing before securitization as well as term funding of consumer finance contracts with terms of up to ten years. The transaction structure supports the Company’s expansion plans to capture a wide variety of consumer finance products at point of sale including home improvement, health care and retail financial solutions.
The Debenture has a term of ten years and carries a fixed interest rate of 5.99{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce}. The rate applicable to future issuances will be fixed at the time of draw at the 10 year Government of Canada Benchmark Bond yield plus an appropriate margin. As part of the transaction, the Company repaid its existing $3 million debenture to the same subscriber instead of amending the instrument as previously announced (for net cash proceeds from the offering of $7 million to the Company). Future debenture issuances are at the discretion of the subscriber.
As a part of the offering, the Company issued 2,000,000 common share purchase warrants (the “Warrants”) to the subscriber. The Warrants have an exercise price of $0.67, expire on January 12, 2019 and are subject to a four month hold period until May 13, 2016. The issuance of the Warrants is subject to final acceptance by the TSX Venture Exchange.
“We have built an exceptional relationship with IA Clarington Investments, the subscriber, and we are now being rewarded for our proven execution and risk management methodologies,” stated Mike Hilmer, CEO of Dealnet. “On full draw, the debentures would support approximately 20,000 additional funded loans or leases in our home improvement vertical. The Debenture structure also co-exists well with additional underwriting facilities expected to be announced this year, which together expand our treasury capability to support significant growth within our financial services division. Our expanded capacity and flexibility supports our drive to be the emerging growth leader in the non-bank lending space.”
Forward Looking Statement
This news release contains certain “forward-looking information” within the meaning of applicable securities law including statements regarding the Company and the Debenture, its expected terms and closing date. Forward looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management’s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.
About Dealnet Capital Corp.
Dealnet is an engagement enabled consumer finance company that is initially focused on home improvement finance solutions including heating ventilation and air conditioning financing and leasing. Dealnet leverages its large scale customer service and engagement technology platform to attract home improvement dealers by providing front and back office services to them resulting in dealer origination growth.
For additional information please visit www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
- Published in Dealnet News, News Home