- Fintech company Lendified Holdings (LHI) has seen shares jump after announcing plans to conduct a non-brokered private placement
- Through the placement, the company will offer units at 2.5 cents each, for up to C$785,400 in total maximum proceeds
- The proceeds will go towards certain expenses including employee payrolls, trade payables, office and administration expenses, and professional fees
- Pending TSXV approval, the company’s offering is likely to close around November 15, 2020
- Lendified Holdings (LHI) is up 60 per cent and is currently trading for 4 cents per share
Fintech company Lendified Holdings (LHI) has seen shares jump after announcing plans to conduct a non-brokered private placement.
Through the proposed placement, the company will offer units for sale, at a price of 2.5 cents each. Each unit will contain one common share in Lendified, and one common share purchase warrant.
Each warrant will be exercisable into one share for five cents per share, within 36 months of the offering’s closing date. If the maximum proceeds are raised, the company will have issued 31.4 million shares, and the same number of warrants.
Overall, Lendified hopes to raise total maximum proceeds of C$785,400 through the private placement. These proceeds will go towards paying a variety of company expenses, including employee payrolls, trade payables, and professional fees.
Some funds will also go towards paying general office and administration expenses. Lendified has clearly stated that the offering proceeds will not primarily be used to pay management fees or for investor relations activities.
In order to offer its units at a price that is less than five cents per share, the company is relying on temporary relief measures announced by the TSXV. The exchange first announced these measures on April 8, before extending them on September 16.
All securities which are issued under this temporary relief will be subject to a TSXV hold period, in addition to the restricted period under applicable securities laws.
Lendified’s non-brokered private placement is subject to final approval from the TSX Venture Exchange (TSXV), and all regulatory approvals. Pending approval from the TSXV, the company’s offering is likely to close around November 15, 2020.
Lendified Holdings (LHI) is up 60 per cent and is trading for 4 cents per share, as of 10:20am EST.
