- Justify Capital Corp. (JST.P) and Everyday People Financial Inc. close brokered private placement of units of EP and provide update on qualifying transaction
- The EP warrants entitle the holder thereof to purchase one EP share at a price of $1.25 at any time on or before January 21, 2024
- EP paid the agents a cash commission equal to 7.0 per cent of the gross proceeds of the private placement
- The commission and the number of EP broker warrants were reduced to 3.5 per cent on $1,500,000 of the proceeds raised by EP
- EP is a FinTech credit provider that offers credit and payment cards, payment processing, homeownership facilitation and collections services
- Justify Capital Corp. (JST.P) is trading at C$0.45 at market close
Justify Capital (JST.P) and Everyday People Financial (EP) have closed a brokered private placement.
Justify Capital issued 4,684,000 units of EP at $1.00 per EP unit for aggregate gross proceeds of $4,684,000.
Each unit of EP was comprised of one class “A” share in the capital of EP and one-half of one EP share purchase warrant.The EP warrants entitle the holder thereof to purchase one EP share at a price of $1.25 at any time on or before January 21, 2024, subject to acceleration.
The private placement replaces the private placement of subscription receipts of EP previously announced on October 15, 2021.
Cantor Fitzgerald Canada Corporation and ATB Capital Markets Inc. acted as lead agents and joint bookrunners in connection with the private placement on behalf of a syndicate of agents that included Canaccord Genuity Corp., INFOR Financial Inc. and Research Capital Corporation.
As consideration for the services rendered by the agents in connection with the private placement, EP paid the agents a cash commission equal to 7.0 per cent of the gross proceeds of the private placement.
Each EP broker warrant entitles the holder thereof to purchase one EP share at a price of $1.00 at any time on or before January 21, 2024.
The commission and the number of EP broker warrants were reduced to 3.5 per cent on $1,500,000 of the proceeds raised by EP.
As additional consideration for the services rendered by the Lead Agents in connection with the private placement, EP paid each of the lead agents a corporate finance fee comprised of (i) cash in an amount to top up the portion of the commission otherwise payable to such lead agent to $100,000, and (ii) $200,000 in EP shares at an indicative price of $1.00 per EP share.
EP intends to use the net proceeds from the private placement for working capital and general corporate purposes.
Justify’s principal business is the identification and evaluation of assets or businesses with a view to completing a Qualifying Transaction.
EP is a FinTech credit provider that offers credit and payment cards, payment processing, homeownership facilitation and collections services to serve an ecosystem of everyday people living in Canada and the United Kingdom.
EP is headquartered in Edmonton, Alberta.
Justify Capital Corp. (JST.P) is trading at C$0.45 at market close.
