- Decisive Dividend Corporation (DE) has received subscription agreements for a non-brokered private placement for gross proceeds of $7.6 million
- The placement includes 1,848,364 units at $4.12 per unit
- The lead subscribers of the private placement are investment funds managed by Waratah Capital Advisors Ltd.
- The proceeds will be used for general corporate purposes, including debt reduction or the funding of future acquisitions
- Waratah Capital Advisors is a Toronto-based asset manager
- Decisive Dividend Corporation is an acquisition-oriented company focused on manufacturing
- Decisive Dividend Corporation is unchanged on the day, trading at $4.35 per share at 11:30 am ET
Decisive Dividend Corporation (DE) has received subscription agreements for a non-brokered private placement for gross proceeds of $7.6 million.
The placement includes 1,848,364 units at $4.12 per unit. Each unit consists of one common share and one-half common share purchase warrant. Each whole warrant entitles the holder to purchase one additional common share at a price of $4.94 for a period of 24 months following the closing of the offering.
The lead subscribers of the private placement are investment funds managed by Waratah Capital Advisors Ltd., which collectively subscribed for 1,638,350 units. Following the closing of the private placement, funds managed by Waratah will hold 14 per cent of the outstanding common shares of Decisive.
The proceeds will be used for general corporate purposes, including debt reduction or the funding of future acquisitions.
Jeff Schellenberg, Chief Executive Officer of Decisive, commented on the financing.
“We are pleased to have successfully completed an offering of this magnitude under current capital market conditions. Further, to complete it with the backing of a prominent institutional investor with the reputation and performance track record of Waratah is a validation of our business model, performance and future potential.
Waratah’s commitment to helping support our future growth, as evidenced by the right to maintain their current share ownership percentage level along with the warrants they have subscribed for as part of their Unit investment, provides a direct line of sight to further equity financing availability as we execute on our acquisition growth plan.
Together with the renewal, extension, and upsize of our credit facilities announced earlier this month, this private placement provides us with further balance sheet strength and increased flexibility to continue pursuing our strategic objectives. We have an active and growing pipeline of potential targets and are committed to continuing to grow through acquisition. We look forward to providing further updates to our shareholders as we progress on these opportunities.”
Brad Dunkley, Chief Investment Officer of Waratah, added,
“As family-owned enterprises look at succession planning in the coming years, we believe Decisive offers a compelling opportunity for entrepreneurs to place their businesses in good hands. We look forward to investing in this opportunity alongside Jeff and his team as significant shareholders in Decisive.”
The private placement is scheduled to close on September 27, 2022. There are no commissions or finder’s fees associated with this private placement.
Waratah Capital Advisors is a Toronto-based asset manager that specializes in alternative strategies. Waratah manages over $4 billion in assets.
Decisive Dividend Corporation is an acquisition-oriented company focused on opportunities in manufacturing.
Decisive Dividend Corporation is unchanged on the day, trading at $4.35 per share at 11:30 am ET.
