Decisive Dividend closes $8-million private placement

Executive Summary

• Decisive Dividend Corp. closed a non-brokered private placement of 1,065,000 common shares at $7.51 per share, generating $8.0 million in gross proceeds.
• The sole purchaser, L6 Holdings Inc. (a private family office controlled by Costain Leonard), increased its stake to approximately 12% of outstanding shares, triggering a regulatory early warning report.
• Net proceeds will be applied to reduce existing credit facility draws, thereby expanding revolving credit availability to fund future acquisitions, alongside an investor rights agreement granting L6 pro-rata issuance rights.

Key Details

• Gross Proceeds: $8.0 million
• Shares Issued: 1,065,000 common shares
• Issue Price: $7.51 per common share
• Purchaser: L6 Holdings Inc. (private family office controlled by Costain Leonard and siblings)
• Post-Transaction Ownership: L6 beneficially owns 2,623,000 shares (~12% of outstanding), up from 1,558,000 shares (~8%) prior to closing
• Use of Proceeds: Reduce amount drawn on the corporation's credit facility; increase availability on revolving credit facility to finance future acquisitions
• Statutory Hold Period: Expires August 2, 2026 (four months and one day following issuance)
• Investor Rights Agreement: Dated April 1, 2026; grants L6 the right to maintain its proportionate share ownership in any future issuances of common shares or convertible/exchangeable securities
• Regulatory Status: Received conditional approval from the TSX Venture Exchange
• Fees: No commissions or finders' fees associated with the placement
• Early Warning Report: Filed pursuant to National Instrument 62-103; shares acquired for long-term investment purposes; L6 reserves the right to acquire additional securities via open market, private acquisitions, treasury, or pre-emptive rights, or dispose of them via open market or private sales

Notable Quotes

• James Paterson, Board Chair: "I have very much enjoyed the opportunity to work through this investment process with the Leonard family... We believe attracting another long-term, engaged shareholder is further confirmation of Decisive's strategy, both up to now and what we hope to achieve in the future."
• Jeff Schellenberg, CEO: "We are pleased to have successfully completed an offering with L6, including a right to maintain their current share ownership percentage level... This private placement strengthens our balance sheet and increases our ability to pursue our strategic objectives. We have an active and growing pipeline of potential targets and are committed to continue growing through acquisition."
• Mr. Leonard, Managing Director of L6: "We are pleased to have made a meaningful portfolio investment in Decisive... We hope that this is the first in a series of well-managed public Canadian companies in which L6 establishes significant long-term investments."