DE:CC - Decisive Dividend Corporation Announces $7.6 Million Non-Brokered Private Placement
(TheNewswire)
September 23, 2022 – TheNewswire - Kelowna, British Columbia: Decisive Dividend Corporation (TSXV:DE) ( “Decisive” or the“ Corporation ”) is pleased to announce that it hasreceived subscription agreements for a non-brokered private placementof 1,848,364 Units at an issue price of$4.12 per Unit, which was calculated as a 7%discount to the volume weighted average tradingprice of the common shares of Decisive for the 30-day trading periodended September 22, 2022 . Each Unit consists ofone common share of the Corporation and one-half common share purchasewarrant (“Warrant”), with each Warrant entitling the holderthereof to purchase one common share at a price of $4.94, a 20%premium to the issue price, for a period of 24 months following theclosing of the private placement.
The lead subscribers of the private placement areinvestment funds managed by Waratah Capital Advisors Ltd.(‘Waratah”), which collectively subscribed for 1,638,350 Units. Subsequent to the closing of the privateplacement, funds managed by Waratah will hold 14% of the outstandingcommon shares of Decisive. Insiders of the Corporation (or associatedpersons) also subscribed for 72,814 Units.
The proceeds of the private placement will be used forgeneral corporate purposes, which may include debt reduction or thefunding of future acquisitions from Decisive’s active and growingpipeline of potential acquisition targets.
In connection with the closing of the privateplacement, the Corporation and Waratah will enter into an investorrights agreement which provides Waratah with the right to maintain, onbehalf of funds managed by it, its proportionate share ownership inthe Corporation, on a fully diluted basis.
Jeff Schellenberg, Chief Executive Officer of Decisive,noted:
“ We are pleasedto have successfully completed an offering of this magnitude undercurrent capital market conditions. Further, to complete it with thebacking of a prominent institutional investor with the reputation andperformance track record of Waratah, is a validation of our businessmodel, performance and future potential.
Waratah’s commitment to helpsupport our future growth, as evidenced by the right to maintain theircurrent share ownership percentage level along with the warrants theyhave subscribed for as part of their Unit investment, provides directline of sight to further equity financing availability as we executeon our acquisition growth plan.
Together with the renewal, extensionand upsize of our credit facilities announced earlier this month, thisprivate placement provides us with further balance sheet strength andincreased flexibility to continue pursuing our strategic objectives.We have an active and growing pipeline of potential targets and arecommitted to continue growing through acquisition . We look forward toproviding further updates to our shareholders as we progress on theseopportunities. ”
Brad Dunkley, Chief Investment Officer of Waratah,noted:
“As family-owned enterprises lookat succession planning in the coming years, we believe Decisive offersa compelling opportunity for entrepreneurs to place their businessesin good hands. We look forward to investing in this opportunityalongside Jeff and his team as significant shareholders inDecisive . ”
The private placement is scheduled to close asannounced on September 27, 2022, subject to receipt of final approvalof the TSX Venture Exchange. There are no commissions or finder’sfees associated with this private placement.
About Waratah Capital AdvisorsLtd.
Waratah Capital Advisors is a Toronto-based assetmanager that specializes in alternative strategies. Waratah managesover $4 billion in assets from high-net-worth individuals, familyoffices, foundations, Canadian bank platforms, and pension funds. Witha team of 54 experienced professionals, Waratah combines intensiveresearch-driven stock selection with a disciplined and robust riskmanagement program. Founders and employees collectively represent over$219 million of the firm’s assets under management.
About Decisive DividendCorporation
Decisive Dividend Corporation is anacquisition-oriented company, focused on opportunities inmanufacturing. The Corporation’s purpose is to be the sought-outchoice for exiting legacy-minded business owners, while supporting thelong-term success of the businesses acquired, and through that,creating sustainable and growing shareholder returns. The Corporationuses a disciplined acquisition strategy to identify alreadyprofitable, well- established , high qualitymanufacturing companies that have a sustainable competitive advantage, a focus onnon-discretionary products, steady cash flows,growth potential and established, strong leadership.
FOR FURTHER INFORMATION PLEASE CONTACT:
Jeff Schellenberg, Chief Executive Officer
#260 – 1855 Kirschner Road
Kelowna, BC V1Y 4N7
Telephone: (250) 870-9146
CautionaryStatements
Not for distribution to U.S.Newswire Services or for dissemination in the United States. Anyfailure to comply with this restriction may constitute a violation ofU.S. Securities laws.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of the contents of this News Release.
This press release containsforward-looking statements, including a statements that the proceedsof the offering may be used for debt reduction and/or futureacquisitions. Forward-looking statements are necessarily based upon anumber of expectations and assumptions that, while consideredreasonable by management at the time the statements are made, areinherently subject to significant business, economic and competitiverisks, uncertainties and contingencies, many of which are beyond theCorporation’s control and many of which are subject to change.Readers are cautioned to not place undue reliance on forward-lookingstatements which only speak as to the date they are made and aresubject to risks, uncertainties and assumptions In particular, thereis no assurance as to the use of proceeds of the private placement andno assurance that the Corporation will use the proceeds to make afuture acquisition of a company in the Corporation’s active andgrowing pipeline of potential target companies. Although managementbelieves that the expectations and assumptions underlying suchforward-looking statements are reasonable, there can be no assurancethat such expectations or assumptions will prove to be correct. Anumber of factors could cause actual future results, performance,achievements and developments of the Corporation to differ materiallyfrom anticipated results, performance, achievements and developmentsexpressed or implied by such forward-looking statements. Theforward-looking statements contained in this press release are made asof the date hereof and the Corporation is not obligated to update orrevise any forward-looking statements, whether as a result of newinformation, future events or otherwise, except as required byapplicable securities laws.
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