Builddirect.com closes $7-million private placement

Executive Summary

• Builddirect.com Technologies Inc. has closed its non-brokered private placement, raising gross proceeds of $7,000,250.
• The company issued 6,087,173 common shares at a price of $1.15 per share.
• Proceeds will be used for growth strategy and general working capital; the transaction involved significant participation from existing major shareholders and insiders.

Key Details

• Transaction Structure: Non-brokered private placement.
• Shares Issued: 6,087,173 common shares.
• Price Per Share: $1.15.
• Gross Proceeds: $7,000,250.
• Net Proceeds Use: Support growth strategy and general working capital purposes.
• Compensation: No bonus, finder's fee, commission, agent's option, or other compensation payable.
• Hold Period: Four-month hold period ending December 2, 2025.
• Lead Investors: Sun Mountain Partners (co-founded by Christian Solberg and William Thorndike) and IFCM Microcap Fund LP (founded by Ian Cassel).
• Insider/Related Party Participation:
  • Pelecanus Investments Ltd.: Purchased 855,625 shares (38.9% ownership post-transaction).
  • Lyra Growth Partners Inc.: Purchased 328,858 shares (15.0% ownership post-transaction).
  • Beedie Investments Ltd.: Purchased 303,561 shares (13.8% ownership post-transaction).
  • Eyal Ofir (Director): Purchased 25,000 shares (0.3% ownership post-transaction).
  • Shawn Wilson (CEO): Purchased 8,695 shares (3.6% ownership post-transaction).
• Regulatory Status: Classified as a related party transaction under Multilateral Instrument 61-101. Exempt from formal valuation and minority approval requirements as insider participation does not exceed 25% of market capitalization. Approved by disinterested directors.
• Timing: Details were not finalized until August 1, 2025 (closing date); no material change report filed more than 21 days prior.

Notable Quotes

• "This financing marks a key step in our growth... That mindset reflects how we intend to build -- with focus, discipline and long-term value creation for all stakeholders of Builddirect." — Shawn Wilson, Chief Executive Officer