Hampton Financial Corporation Completes Private Placement
Hampton Financial Corporation (“Hampton”, TSXV: HFC) is excited to share the successful closure of a non-brokered private placement, marking a significant achievement for the company. This placement of unsecured convertible debentures totals $300,000, which stands as a testament to the trust investors place in Hampton and its strategies for growth.
Understanding the Unsecured Convertible Debentures
The newly issued $300,000 in debentures is set to mature five years after their issue date, providing a timeframe for potential returns. These debentures will accumulate interest at a competitive rate of 10.0% per annum, with payments scheduled quarterly. Investors will receive the first interest payout at the end of the first calendar quarter following the closing date, reflecting the accrued interest from the time of closing.
Conversion Rights and Opportunities
These debentures come with a distinctive feature that invites investment flexibility. Holders can convert their debentures into common shares of Oxygen Working Capital Corp. (OWC), a wholly owned subsidiary of Hampton, at a price of CAD$0.50 per share at any point before the maturity date. Should they opt for conversion, any outstanding interest accrued will also be paid in cash upon conversion.
Utilizing Proceeds for Strategic Growth
The proceeds from this private placement are expected to play a crucial role in bolstering OWC’s loan portfolio and supporting its working capital requirements. This strategic deployment of funds demonstrates Hampton's commitment to nurturing its subsidiary and enhancing its service offerings.
About Oxygen Working Capital Corp.
Founded in 2017, OWC serves as a vital player in the commercial factoring business across Canada. It aims to empower entrepreneurs by providing immediate financing solutions through factoring, thereby addressing their urgent working capital needs. The acquisition of OWC further accentuates Hampton's expansion strategy, allowing the Company to diversify and strengthen its financial services.
A Glimpse at Hampton Financial Corporation’s Activities
Hampton stands out in the private equity landscape by focusing on long-term value creation through strategic investments. Besides OWC, the Company actively engages through its investment dealer subsidiary, Hampton Securities Limited (HSL). HSL is recognized for comprehensive wealth management and advisory services and continues to cater to a variety of clients across multiple jurisdictions in Canada.
Hampton’s investment banking services further underline its expertise, as it assists companies in raising capital and navigating mergers and acquisitions. Moreover, the Company is on the lookout for opportunities to expand its revenue streams through strategic investments and acquisitions.
Contact Information
For additional inquiries, you can reach out to:
Olga Juravlev
Chief Financial Officer
Hampton Financial Corporation
(416) 862-8701
Or
Peter M. Deeb
Executive Chairman & CEO
Hampton Financial Corporation
(416) 862-8651
Frequently Asked Questions
What is the purpose of the private placement?
The private placement aims to secure capital to support the growth of Oxygen Working Capital Corp.
What are the terms of the convertible debentures?
The debentures have a principal amount of $300,000, maturing in five years with a 10.0% annual interest rate, payable quarterly.
How can debenture holders convert their securities?
Holders can convert their debentures into common shares of OWC at a conversion price of CAD$0.50 per share before the maturity date.
What services does Hampton Financial Corporation provide?
Hampton offers investment management, capital markets activities, and operational support for mergers and acquisitions.
Who can I contact for more information about Hampton Financial?
Contact Olga Juravlev or Peter M. Deeb via the provided phone numbers for details regarding the Company’s activities.
