/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR
DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES./
VANCOUVER,
BC, June 15, 2021 /CNW/ - BBTV Holdings Inc.
(TSX: BBTV) (OTCQX: BBTVF) ("BBTV" or the "Company"),
further to its news releases on May 26,
2021 and June 2, 2021, is
pleased to announce that it has completed its previously announced
bought deal public offering and private placement offering issuing
an aggregate of 37,270 7% unsecured convertible debentures (the
"Convertible Debentures") of the Company at a price of
$1,000 per Convertible Debenture for
aggregate gross proceeds of $37,270,000.
Of the total number of Convertible Debentures issued, 17,270
were issued in a short form prospectus offering on a "bought deal"
basis pursuant to an underwriting agreement, including 2,250
Convertible Debentures issued pursuant to the exercise of an
over-allotment option (the "Bought Deal") and the remaining
20,000 were issued on a private placement basis to a "long
only" fund, owned by a trillion-dollar asset manager (together with
the Bought Deal, the "Offering"). The Bought Deal included
participation from the Company's management
team, employees and board, including the CEO. This is in
addition to the CEO and the lead Director contributing more than
10% of the IPO round in October, 2020 of $17.5 million.
The Company intends to use the net proceeds of the Offering for
working capital, including organic growth initiatives, potential
M&A transactions and to pay down the Company's existing secured
debt.
"We are very pleased to upsize and close the full financing plan
we unveiled a few weeks ago. This financing package provides
significant strength to our balance sheet and enables us to pursue
organic and inorganic growth initiatives integral to our strategic
business plan," said Shahrzad
Rafati, Chairperson and CEO of BBTV. "We are grateful and
delighted to welcome a number of new institutional investors
including a large Canadian trillion-dollar asset manager who has
acquired our notes within a 'long only' fund. We view the
strong support we've received as validation of our efforts to help
creators all over the world grow and engage with audiences and
ultimately achieve greater financial success."
Terms of the unsecured Convertible Debentures issued today,
include:
- Maturity date of June 15,
2026.
- 7% interest rate with the first interest payment due
December 31, 2021 and annually
thereafter.
- Conversion of principal at the option of holders into
Subordinate Voting Shares at $10.55
per share, being a premium to the current market price.
- Conversion of principal at the option of Company after
October 16, 2021 to Subordinate
Voting Shares if the closing price of the Subordinate Voting Shares
on the Toronto Stock Exchange (the "TSX") is greater
than $20.00 for 20 consecutive days,
also at $10.55 per share
(a "Mandatory Conversion"). In the
event of a Mandatory Conversion prior to June 15, 2024 (the "3-year
Anniversary"), in addition to any unpaid and accrued
interest, the holders of Convertible Debentures shall be entitled
to an amount equal to interest that would otherwise be payable from
the time of the Mandatory Conversion until the 3-year
Anniversary.
The Company's existing secured convertible loan and accrued
interest thereon has been paid down by $20,000,000 and amended with the following
changes:
- Maturity date extended to May 26,
2026.
- Interest rate fixed at 8% per annum (interest remains payable
on the earlier of the maturity date or the date of
conversion).
- If the holder elects to convert to Subordinate Voting Shares on
maturity, the conversion price has been changed from a discount to
fair market value to a price equal to the five day volume weighted
average trading price as of the last trading day prior to maturity
plus a 20% premium (conversion price on certain other triggering
events remains unchanged).
- Amount outstanding reduced from $49.0M to new principal amount of $29.0M.
Eight Capital and Canaccord Genuity Corp. acted as co-lead
underwriters of the Bought Deal, together with a syndicate of
underwriters, including Stifel GMP, Scotia Capital Inc., CIBC
Capital Markets, Cormark Securities Inc., Desjardins Capital
Markets, PI Financial Corp., and Roth Canada, ULC. The Company paid
the underwriters a cash commission equal to 5.0% of the gross
proceeds from the Bought Deal (2.5% in respect of the gross
proceeds raised from purchasers on the president's list).
It is anticipated the Convertible Debentures issued in
connection with the Bought Deal will commence trading on the
TSX on June 16, 2021 under the symbol
"BBTV.DB".
The Bought Deal included participation from the Company's CEO,
the lead Director of the Company and certain other senior officers
of the Company in the aggregate of 191 Convertible Debentures.
Accordingly, the Bought Deal constituted a "related party
transaction" as such term is defined in Multilateral Instrument
61-101 – Protection of Minority Security Holders in Special
Transactions ("MI 61-101"), which requires that the
Company, in the absence of exemptions, obtain a formal valuation
for, and minority shareholder approval of, the related party
transaction. The Bought Deal is exempt from the valuation and the
minority shareholder approval requirements of MI 61-101 by virtue
of the exemptions contained in section 5.5(a) and 5.7(1)(a),
respectively, as the fair market value of the consideration for the
Convertible Debentures issued to "related parties" is not more than
25% of the Company's market capitalization. As the material change
report relating to the completion of the Bought Deal will be filed
on SEDAR less than 21 days before the completion of the Bought
Deal, there is a requirement under MI 61–101 to explain why the
shorter period is reasonable or necessary in the circumstances. In
the view of the Company, such shorter period is reasonable and
necessary in the circumstances because the Company wished to
complete the Bought Deal in a timely manner.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any state in which such offer, solicitation or sale
would be unlawful. The securities being offered have not been, nor
will they be, registered under the United States Securities
Act of 1933, as amended, and may not be offered or sold in
the United States absent
registration or an applicable exemption from the registration
requirements of the United States Securities Act of
1933, as amended, and applicable state securities laws.
BBTV HOLDINGS INC.
Per: "Shahrzad
Rafati"
Shahrzad
Rafati
Chief Executive Officer
About BBTV
BBTV is a global media and technology company headquartered in
Vancouver, Canada. The Company's
mission is to help content creators become more successful. With
creators ranging from individuals to global media brands, BBTV
provides a comprehensive, end-to-end solution to increase
viewership and drive revenue powered by its innovative technology,
while allowing creators to focus on their core competency – content
creation. In January 2021, BBTV had
the second most unique monthly viewers among digital platforms with
more than 600 million globally, who consumed more than 50 billion
minutes of video content, the most among media
companies1. (www.bbtv.com)
1Comscore's "Top 12 Countries = January
2021 comScore Video Metrix Media Trend –Multi-Platform –Top 100
Video Properties Report"; Top 12 countries represent ~50% of
world's digital population.
|
Notice Regarding Forward Looking Statements
This news release contains forward-looking information within
the meaning of applicable securities legislation, including
statements with regards to the intended use of proceeds of the
Offering and listing of the Convertible Debentures on the TSX. Such
forward looking information reflects the Company's current
expectations regarding future events. Forward-looking information
is based on a number of assumptions and is subject to a number of
risks and uncertainties, many of which are beyond the Company's
control, which could cause actual results and events to differ
materially from those that are disclosed in or implied by such
forward-looking information. Such risks and uncertainties include,
but are not limited to: risks inherent in the technology, media,
advertising, and creator economy sectors in general; business
disruption and operation risks related to COVID-19; other factors
beyond the control of the Company; and the risk factors disclosed
in the Company's periodic reports publicly filed and available at
www.sedar.com. The Company does not undertake any obligation to
update such forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law.
BBTV-F
SOURCE BBTV Holdings Inc.