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People Corporation Closes $64 Million Bought Deal Private Placement Common Share Offering

Written by People Corporation | Oct 16, 2019 5:00:00 AM

Winnipeg, October 16, 2019:  People Corporation (TSX-V: PEO) (the “Company”) is pleased to announce that it has closed its previously announced bought deal private placement common share offering (the “Offering”) 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 the Offering, the Company issued 6,983,500 common shares (the “Shares”) of the Company at a price of $9.10 per Share, including 389,500 Shares issued pursuant to the exercise of the Underwriters’ over-allotment option, for gross proceeds to the Company of $63,549,850. The Underwriters received a cash commission equal to 5.0% of the gross proceeds raised in the Offering.

The net proceeds of the Offering will be used to reduce debt, fund growth initiatives (including future acquisitions) and general corporate purposes.

The Shares issued in connection with the Offering are subject to a statutory four-month hold period, which expires on February 17, 2020.

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.

Investor Relations Inquiries:

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

www.peoplecorporation.com