App developer HeyBryan Media (HEY) is hoping to raise up to C$350,000 in gross proceeds, through its latest private placement.
Based in Vancouver, HeyBryan Media is named after Canadian HGTV personality, Bryan Baeumler. In addition to his career on TV, Bryan is also an expert in home maintenance, the industry at the heart of the company’s flagship product.
The HeyBryan app is a peer-to-peer marketplace app, which connects home maintenance experts with customers. Any consumer with everyday home maintenance needs can communicate with, book, and securely pay a background-checked contractor through the app.
The HeyBryan contractors currently provide services for tasks including home cleaning, appliance repair, junk removal, plumbing, painting, electrical, or general handyman services.
Through this new private placement, HeyBryan will sell units in the company to subscribers for 4.1 cents per unit. Each unit will consist of one offered share and one warrant, with each warrant exercisable for six cents.
One warrant will allow the holder to purchase one warrant share, within 24 months of the units’ issuance date. However, HeyBryan has the right to accelerate the warrants’ expiry date, if the company’s common shares on the CSE have a closing price of more than eight cents per share for ten consecutive trading days.
If this should occur, the unit warrants will expire 30 days after HeyBryan notifies the warrant holders of the acceleration.
All securities which are issued through the private placement will be subject to a four-month hold period. This period will start on the closing date of the company’s offering.
HeyBryan did not specify how it will spend the proceeds from the private placement. However, it is likely that the funds will help the company to continue capitalising on the gig economy, which is growing in size.
A gig economy is a market that is characterised by temporary short-term contracts and freelance work, as opposed to more traditional, permanent jobs. In the age of online platforms and apps, the ability to contact independent contractors for their services is becoming much more accessible, flexible, and convenient.
Successful examples of this include well-known companies and brands such as ridesharing app Uber, online home rental service Airbnb, and food delivery service Deliveroo.
Despite the ongoing impacts of the COVID-19 pandemic, numerous gig economy companies have continued to flourish, with many consumers relying even more heavily on delivery service enterprises during lockdowns.
As a result of the gig economy’s continuing growth, the global peer-to-peer marketplace is now valued at approximately $340 billion. HeyBryan intends to make the most of this economic trend, which is seeing more and more consumers cutting out the middleman in their service provider transactions.
HeyBryan Media (HEY) is holding steady and at three cents per share at 10:55am EDT.