/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
WINNIPEG, Sept. 23, 2019 /CNW/ - People Corporation (TSX-V:
PEO) (the "Company") announced today that it has entered into an
agreement with a syndicate of underwriters led by Cormark
Securities Inc. and including Acumen Capital Finance Partners
Limited, National Bank Financial Inc., BMO Capital Markets, CIBC
World Markets Inc., and TD Securities Inc. (collectively the
"Underwriters"), pursuant to which the Underwriters have agreed to
purchase, on a bought deal private placement basis, 6,594,000
common shares (the "Shares") of the Company at a price of
$9.10 per Share (the "Issue Price"),
for gross proceeds to the Company of approximately $60 million (the "Offering").
The Underwriters have also been granted an option (the
"Underwriter's Option"), exercisable in whole or in part at any
time prior to the closing date, to purchase for resale up to an
additional 15% of the Shares sold pursuant to the Offering at the
Issue Price, which would result in additional gross proceeds of
approximately $9 million.
The Offering is scheduled to close on or about October 16, 2019 and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the TSX Venture
Exchange and any applicable securities regulatory authorities. The
Underwriters have agreed to endeavour to arrange for substituted
purchasers for the Shares.
The net proceeds of the Offering will be used to reduce debt,
fund growth initiatives (including future acquisitions) and general
corporate purposes.
The Company will pay a cash commission to the Underwriters equal
to 5.0% of the gross proceeds raised in the Offering, including
proceeds raised on exercise of the Underwriter's Option.
This press release does not constitute an offer to sell or
solicitation of an offer to buy the securities in any jurisdiction.
The common shares will not be and have not been registered under
the United States Securities Act of 1933, as amended, and may not
be offered or sold in the United
States or to, or for account or benefit of, U.S. persons,
absent registration or applicable exemption from the registration
requirements. Any public offering of securities in the United States must be by means of a
prospectus containing detailed information about the Company and
management as well as financial statements.
About People Corporation
People Corporation (https://www.peoplecorporation.com) is a
national provider of group benefits, group retirement and human
resource services. The Company has offices across
Canada, each led by a team of
experts and backed by the resources of a national company that is
traded on the TSX-V. The Company's industry experts provide
uniquely valuable insight while customizing an innovative suite of
services to the specific needs of its clients. Whatever your
sector, whatever your scale, putting People Corporation's expertise
and proven track record to work will make a difference to your
people and your bottom line. Further information is available
at www.peoplecorporation.com.
Forward-Looking Information
This news release contains "forward-looking statements" within
the meaning of applicable securities laws, such as statements
concerning anticipated future events, results, circumstances,
performance or expectations that are not historical facts.
Use of words such as "may", "will", "expect", "believe", "intends",
"likely", or other words of similar effect may indicate a
"forward-looking" statement. These statements are not
guarantees of future performance and are subject to numerous risks
and uncertainties, including those described in the Company's
publicly filed documents (available on SEDAR at
www.sedar.com). Those risks and uncertainties include the
ability to maintain profitability and manage organic or acquisition
growth, reliance on information systems and technology, reputation
risk, dependence on key clients, reliance on key professionals and
general economic conditions. Many of these risks and
uncertainties can affect the Company's actual results and could
cause actual results to differ materially from those expressed or
implied in any forward-looking statement made by the Company or on
its behalf. Given these risks and uncertainties, investors
should not place undue reliance on forward-looking statements as a
prediction of actual results. All forward-looking statements
in this news release are qualified by these cautionary
statements. These statements are made as of the date of this
news release and, except as required by applicable law, the Company
undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. Additionally, the Company
undertakes no obligation to comment on analyses, expectations or
statements made by third parties in respect of the Company, its
financial or operating results or its securities.
Neither the 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 press release.
SOURCE People Corporation