Dr. Phone Fix arranges $2.5-million private placement

Executive Summary

• Dr. Phone Fix Canada Corp. announced a non-brokered private placement of up to 16,666,667 units at $0.15 per unit, raising up to $2.5 million in gross proceeds.
• The company intends to use the net proceeds to fund an M&A growth strategy, aiming to double its store count from 35 to 70 over the next 12 to 18 months, alongside general working capital needs.
• The offering includes warrants with an exercise price of $0.25, subject to acceleration clauses if the share price reaches $0.40 for 10 consecutive days, with an expected closing date around September 25, 2025.

Key Details

• Transaction Structure: Non-brokered private placement of up to 16,666,667 units.
• Price: $0.15 per unit.
• Gross Proceeds: Up to $2.5 million.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms:
  • Each warrant entitles the holder to acquire one common share.
  • Exercise Price: $0.25 per share.
  • Duration: Two years from the date of issuance.
  • Acceleration Clause: If the volume-weighted average trading price on the TSX Venture Exchange is $\ge$ $0.40 for 10 consecutive trading days, the company may accelerate the warrant expiry to 30 days after written notice.
• Use of Proceeds: Implementation of M&A growth strategy (targeting selective accretive opportunities) and general working capital.
• Strategic Goal: Double store count from 35 to 70 over the next 12 to 18 months.
• Closing Date: Expected on or about September 25, 2025.
• Regulatory Conditions: Subject to customary conditions, including approval of the TSX Venture Exchange.
• Statutory Hold: Four months and one day for all securities issued.
• Over-Allotment/Increase Option: The company reserves the right to increase the offering size to 26,666,667 units for gross proceeds of up to $4 million prior to closing.

Notable Quotes

• "This financing provides us with the resources to accelerate our growth strategy," said Piyush Sawhney, chief executive officer of Dr. Phone Fix. "In addition to opening new stores organically, we are targeting selective accretive M&A opportunities with the clear intention of approximately doubling our store count from 35 to 70 over the next 12 to 18 months. By expanding our national footprint, we will be well positioned to drive additional value for our shareholders, strengthen our industry partnerships and solidify our position as Canada's leading independent mobile device repair and services provider."