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BuildDirect Announces $3 Million Private Placement Financing and Key Changes to Senior Management
Thursday, September 1, 2022Company Profile | Follow Company
Vancouver, BC, September 2, 2022--(T-Net)--BuildDirect.com Technologies Inc. (TSXV: BILD) announced today a $3 million non-brokered private placement financing as well as some key changes to its senior management and Board of Directors.
BuildDirect announced the Private Placement of up to approximately 6,522,000 common shares at a price of $0.46 per Common Share for total gross proceeds of up to $3 million. Pelecanus Investments Ltd., Lyra Growth Partners Inc. and Beedie Investments Ltd. will participate in the Private Placement.
The Company will use the net proceeds from the Private Placement to continue to advance BuildDirect's strategy and for general working capital purposes.
Closing of the Private Placement is expected to occur in multiple tranches within the next 30 days and is subject to various conditions, including approval of the TSX Venture Exchange. No finder's fee is payable in connection with this financing.
Changes to Senior Management and the Board of Directors :
The Company announces the following changes to its senior management and Board of Directors:
Shawn Wilson is a seasoned home improvement executive with cross-functional experience throughout the building materials industry including e-commerce, big-box retail, manufacturing and installation services. He is a proven leader that is skilled in developing teams and effective strategies to deliver profitable growth.
Most recently Shawn served as Vice President at Empire Today and previously held roles as Chief Executive Officer of Plum as well as senior management positions with Romanoff Renovations, The Home Depot and Mohawk Industries. Shawn received his BBA from Colorado Technical University and his MBA and Doctorate in Business Management from Kennesaw State University.
Matthew Alexander has worked under Ethan for the duration of Ethan's time as Chief Financial Officer of BuildDirect and partnered to help lead the Company's last two acquisitions as well as its reverse takeover transaction in August 2021.
He has over 15 years of financial, strategic, and operational experience over a diverse set of industries, including SaaS, technology, financial services, and media. Matt joined BuildDirect in 2020 and has held the roles of Director, Finance and VP, Finance during his time with the Company.
Prior to BuildDirect, Matt held positions as Senior Manager, FP&A with Hootsuite, Manager, FP&A at Dome Productions and as an accountant at Grant Thornton LLP. Matt is a CPA-CA Chartered Accountant and received his BA in economics from the University of Victoria.
"Professional contractors are the lifeblood of the home improvement and commercial development industries who help drive industry market share through their own self-generated referrals and book of business", said Shawn Wilson.
"I'm excited to lead the BuildDirect team in its ongoing focus on the pro customer market and its efforts to continue to improve its service to professional flooring contractors."
"We are excited to bring Shawn onboard as the CEO of BuildDirect after a rigorous search process," said Board Director Milan Roy. "His deep and diverse flooring experience aligns with the Company's goals of focusing on and serving our pro contractor customer base online or offline. Also, on behalf of the Board, we would like to thank David Lazar, Ethan Rudin and Dan Park for their respective service to the Company and wish them well in their current and future endeavors."
The appointments of Shawn Wilson and Matthew Alexander remain subject to receipt of all required regulatory approvals, including the approval of the TSX Venture Exchange.
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 a growing omnichannel building material retailer. BuildDirect connects North American home improvement B2B and B2C organizations and homeowners with quality building materials and services through its robust global supply chain network. BuildDirect's growth trajectory, strong product offering and proprietary heavyweight delivery network are delivering value today, solidifying its position as an innovative player in the home improvement industry.
Additional Details on the Financing
Pelecanus, Lyra and Beedie are insiders by virtue of currently holding 37.7%,12.9% and 11.4% respectively of the issued and outstanding common shares of the Company on a partially diluted basis. Accordingly, participation by these parties in the Private Placement 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 is exempt from the formal valuation and minority approval requirement under MI 61-101 as the fair market value of Pelecanus', Lyra's and Beedie's participation in the Private Placement will not exceed more than 25% of the market capitalization of the Company, as set forth in Sections 5.5(a) and 5.7(1)(a) of MI 61-101.
The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the issuer and its management, as well as financial statements.
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