Builddirect.com arranges $7-million private placement

Executive Summary

• Builddirect.com Technologies Inc. has announced a non-brokered private placement of up to 6.1 million common shares at $1.15 per share, raising up to $7 million in gross proceeds.
• The offering is being led by the company's three largest shareholders: Pelecanus Investments Ltd., Lyra Growth Partners Inc., and Beedie Investments Ltd.
• Net proceeds will be used to advance the company's growth strategy and for general working capital purposes.

Key Details

• Transaction Structure: Non-brokered private placement of common shares.
• Share Quantity: Up to 6.1 million common shares.
• Price: $1.15 per common share.
• Gross Proceeds: Up to approximately $7 million.
• Use of Proceeds: Advancing Builddirect.com's growth strategy and general working capital purposes.
• Participants: Pelecanus Investments Ltd., Lyra Growth Partners Inc., and Beedie Investments Ltd. (the three largest shareholders).
• Related Party Transaction: Participation by insiders constitutes a related party transaction under Multilateral Instrument 61-101.
• Regulatory Exemption: The company is exempt from formal valuation and minority approval requirements under MI 61-101 because the insiders' participation will not exceed 25% of the company's market capitalization.
• Conditions Precedent: Closing is subject to various conditions, including approval of the TSX Venture Exchange.
• Fees: No finder's fee is payable in connection with this financing.