Hampton Financial Corporation Announces 3rd Quarter Results and Completion of Second Tranche of Non-Brokered Private Placement of Unsecured Convertible Debentures
July 29 2022 - 04:37PM
Hampton Financial Corporation (“Hampton” or the
“Corporation”) (TSXV:HFC & HFC.PR.A) is pleased to report its
financial performance for the 3rd quarter ended May 31st, 2022.
Revenues for the quarter were
$5,157,000 vs
$4,504,000 in the
3rd quarter of last year; an increase of 14.5%.
Net
Income for the period was
$370,000 or
$0.01 per share compared to
$300,000 or $0.01 per
share in 2021.
EBITDA for the quarter was
$668,000 vs
$601,000 in the same
quarter last year; an increase of 11.0%.
For the nine-month period ended May 31st, 2022
Revenues were $14,805,000 vs
$11,477,000 in the corresponding period in 2021;
an increase of 29.1%. Net income for the
nine-month period ended May 31st, 2022 was
$1,591,000 or $ 0.05 per share vs
$817,000 or $0.03 per share in the corresponding
period in 2021. EBITDA for the nine-month
period was $2,494,000 vs
$1,735,000 in the corresponding period in 2021; an
increase of 43.7%.
“All business lines continue to perform well
despite challenging market, and economic, conditions. We continue
to exceed last year’s results and are looking forward to the
remainder of our fiscal year, as we look to carry our strong
year-to-date date performance well into Q4, and beyond,” stated
Hampton Executive Chairman & CEO Peter Deeb.
Hampton is also pleased to announce the closing
of the second tranche of a non-brokered private placement of
unsecured convertible debentures (the “Debentures”) in the
principal amount of $1,300,000. The closing of the second tranche
is part of a larger offering of Debentures in the aggregate
principal amount of up to CAD$6,000,000 (the “Offering”). The
Debentures will mature five (5) years after the issue date (the
“Maturity Date”) and will bear interest at the rate of 9.0% per
annum, payable quarterly in arrears on the last day of March, June,
September and December in each year until the Maturity Date. The
first interest payment will be made at the end of the first
calendar quarter following the closing date (the “Initial Interest
Payment Date”) and will consist of interest accrued from and
including the closing date to the Initial Interest Payment Date.
Interest will be payable in cash only and will cease to accrue on
the Maturity Date.
The whole, or any part, of the principal amount
of the Debentures is convertible into subordinate voting shares of
the Corporation, at the option of the holder thereof, at any time
prior to 4:00 p.m. (Toronto time) on the Maturity Date, at a
conversion price of CAD$0.60 per share. Upon conversion of the
Debentures the holders of Debentures will receive cash payment of
any interest which accrues from the most recent interest payment
date to the date of conversion. The proceeds from the Offering will
be used for working capital and general corporate purposes. The
Debentures and any subordinate voting shares issued upon the
conversion thereof are subject to a hold period expiring on the
date that is four months and one day following the date of issuance
of the Debentures, in accordance with applicable securities
legislation.
In connection with the closing of the second
tranche of the Offering the Corporation paid a finders’ commission
to a registrant consisting of a cash commission of $65,000 together
with 102,500 warrants, each warrant exercisable to purchase one
subordinate voting share of the Corporation at the price of $0.60
per share on or before the day that is three years from the date of
issue of the warrants. The warrants and any subordinate voting
shares issued upon the conversion thereof are subject to a hold
period expiring on the date that is four months and one day
following the date of issuance of the warrants, in accordance with
applicable securities legislation.
The Corporation had filed a Price Reservation
Form (Form 4A) with the TSX Venture Exchange (“TSXV”) on June 23,
2022. The TSXV has issued conditional acceptance of the Offering.
The Offering remains subject to receipt of final acceptance by the
TSXV.
About Hampton Financial
Corporation
Hampton Financial Corporation is a unique
private equity firm that seeks to build shareholder value through
long-term strategic investments. Through its wholly owned
subsidiary, Hampton Securities Limited (“HSL”),
Hampton is actively engaged in family office, wealth management,
institutional services, and capital markets activities. HSL is a
full-service investment dealer, regulated by IIROC and registered
in Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia,
Northwest Territories, Ontario, and Quebec. In addition, the
company provides investment banking services, which include
assisting companies with raising capital, advising on mergers and
acquisitions, and aiding issuers in obtaining a listing on
recognized securities exchanges in Canada and abroad.
For more information, please contact:
Azmatali MehraliChief Financial OfficerHampton
Financial Corporation(416) 862-8701
Or
Peter M. DeebExecutive Chairman & CEOHampton
Financial Corporation(416) 862-8651
The TSXV has in no way approved nor
disapproved the contents of this press release. Neither the TSXV
nor its Regulation Services Provider (as that term is defined in
the policies of the TSXV) accepts responsibility for the adequacy
or accuracy of this press release.
No securities regulatory authority has
either approved or disapproved of the contents of this press
release. This press release does not constitute or form a part of
any offer or solicitation to buy or sell any securities in the
United States or any other jurisdiction outside of Canada. The
securities being offered have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or the securities laws of any state of the
United States and may not be offered or sold within the United
States or to a U.S. person absent registration or pursuant to an
available exemption from the registration requirements of the U.S.
Securities Act and applicable state securities laws. There will be
no public offering of securities in the United States.
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