VANCOUVER, BC, Feb. 15, 2022 /CNW/ - BuildDirect.com
Technologies Inc. (TSXV: BILD) ("BuildDirect" or
"Company"), announces the closing of a secured debt
financing pursuant to which it issued, via its wholly owned
subsidiary BuildDirect Operations Limited, secured notes to
Pelecanus Investments Ltd. ("Pelecanus"), Lyra Growth
Partners Inc. ("Lyra") and Beedie Investments Ltd.
("Beedie Capital") in an aggregated amount of US
$3 million (the "Loan").
Terms of the Loan include the following:
- The Loan matures on July 2,
2022;
- The Loan bears interest at an annual rate of 12% compounded
monthly and is payable upon repayment of the Loan; and
- A commitment fee equal to 1% of the Loan is payable upon
repayment of the Loan.
The net proceeds from the Loan will be used to continue to
advance BuildDirect's strategy and for general working capital
purposes of the Company. The TSX Venture Exchange has been provided
notice of the Notes under TSXV Policy 5.1 – Loans, Loan Bonuses,
Finder's Fees and Commissions.
Pelecanus, Lyra, and Beedie Capital are insiders by virtue of
holding 40.2%, 12.9% and 11.4% respectively of the issued and
outstanding common shares of the Company on a partially diluted
basis. As a result of the foregoing, the secured notes issued to
the above entities constitutes a related party transaction as
defined under Multilateral Instrument 61-101 Protection of
Minority Security Holders in Special Transactions ("MI
61-101"). The Company relied upon the exemptions from the
formal valuation and minority shareholder approval requirements in
sections 5.5(b) – Issuer not Listed on Specified
Markets and 5.7(1)(a) – Fair Market Value Not More
Than 25 Per Cent of Market Capitalization, respectively of
MI 61-101.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
About BuildDirect
BuildDirect (TSXV: BILD) is an
innovative technology platform for purchasing and selling building
materials online. The BuildDirect platform connects homeowners and
home improvement professionals in North
America with suppliers and sellers of quality building
materials from around the world, including flooring, tile, decking
and more. BuildDirect's growth, proprietary heavyweight delivery
network, and digital reach have served to solidify its role as a
ground-breaking player in the home improvement industry. For more
information, visit www.BuildDirect.com.
Forward-Looking Information
This press release
contains statements which constitute "forward-looking statements"
and "forward-looking information" within the meaning of applicable
securities laws (collectively, "forward-looking statements"),
including statements regarding the plans, intentions, beliefs and
current expectations of the Company with respect to future business
activities and operating performance. Forward-looking statements
are often identified by the words "may", "would", "could",
"should", "will", "intend", "plan", "anticipate", "believe",
"estimate", "expect" or similar expressions. These statements
reflect management's current beliefs and expectations and are based
on information currently available to management as at the date
hereof. Forward-looking statements involve significant risk,
uncertainties and assumptions.
Forward-looking statements in this press release may include,
without limitation, statements relating to BuildDirect's use of the
proceeds from the Loan and BuildDirect's ability to repay the
Loan.
Many factors could cause actual results, performance or
achievements to differ materially from the results discussed or
implied in the forward-looking statements. Among those factors are
changes in consumer spending, availability of mortgage financing
and consumer credit, changes in the housing market, changes in
trade policies, tariffs or other applicable laws and regulations
both locally and in foreign jurisdictions, availability and cost of
goods from suppliers, fuel prices and other energy costs, interest
rate and currency fluctuations, retention of key personnel and
changes in general economic, business and political conditions.
These forward-looking statements may be affected by risks and
uncertainties in the business of the Company and general market
conditions, including COVID-19.
Should one or more of these risks or uncertainties materialize,
or should assumptions underlying the forward-looking statements
prove incorrect, actual results may vary materially from those
described herein as intended, planned, anticipated, believed,
estimated or expected. These factors should be considered carefully
and readers should not place undue reliance on the forward-looking
statements.
Although the forward-looking statements contained in this press
release reflect the Company's expectations, estimates or
projections concerning future results or events based on the
opinions, assumptions and estimates of management considered
reasonable at the date the statements are made, the Company cannot
assure readers that actual results will be consistent with these
forward-looking statements. There may be other risks, uncertainties
and factors that cause results not to be as anticipated, estimated
or intended and such changes could be material. These
forward-looking statements are made as of the date of this press
release, and BuildDirect assumes no obligation to update or revise
them to reflect new events or circumstances, except as required by
law.
Contact information: Investor Relations, Ashley Nuell, ir@builddirect.com
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SOURCE BuildDirect.com Technologies Inc.