Winnipeg, April 7, 2020: People Corporation (TSX-V: PEO) (the “Company”) is pleased to announce that it has amended its 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”), and has agreed to increase the size of its previously announced $20 million “bought deal” private placement offering. Pursuant to the upsized deal terms, the Underwriters have agreed to purchase, on a “bought deal basis”, 3,077,000 common shares (“Shares”) in the capital of the Company, at a price of $7.15 per Share (the “Issue Price”) for aggregate gross proceeds of approximately $22 million (the “Offering”).
In addition, the over-allotment option (the “Over-Allotment Option”) granted to the Underwriters has been changed to up to 423,000 Shares at the Issue Price per Share, exercisable in whole or in part at any time prior to the closing date of the Offering, for market stabilization purposes and to cover over-allotments, if any. In the event that the Over-Allotment Option is exercised in its entirety, the aggregate gross proceeds of the Offering shall be approximately $25 million.
The Offering is scheduled to close on or about April 16, 2020 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 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 Over-Allotment 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 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.
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.
Investor Relations Inquiries:
All People Corporation investor relations inquiries should be directed to:
Jonathan Ross, CFA
Investor Relations – People Corporation
(416) 283-0178
jon.ross@loderockadvisors.com
Dennis Stewner, CPA, CA
CFO and COO – People Corporation
(204) 940-3988
dennis.stewner@peoplecorporation.com