Northfield Capital Introduces Brokered Financing Initiative
Northfield Capital Corporation (TSX-V: NFD.A) is excited to announce a significant brokered financing aimed at raising up to $10 million through the sale of units. Each unit is priced at $5.50 and is composed of one class A restricted voting share and one share purchase warrant. This strategic move is designed to bolster the company's operational capabilities.
Details of the Offering
Integrity Capital Group Inc. serves as the lead agent for this offering, overseeing a syndicate of agents who will facilitate the issuance of these units. Upon completion, a cash commission of 6% will be paid to the agents, along with compensation options equivalent to 6% of the total number of units sold.
Investors can look forward to acquiring warrants that allow the purchase of additional shares at a price of $7.50 within a three-year timeframe post-offering closure. These warrants represent a compelling incentive to engage in the financing process.
Use of Proceeds
The funds raised from this offering will primarily be allocated toward operational expenditures and general corporate needs, laying the groundwork for future growth and sustainability. The closing date for this offering is projected to be around early December, contingent on the endorsements from the TSX Venture Exchange.
Compliance with Regulatory Standards
This offering will be conducted under established Canadian securities regulations, specifically through prospectus exemptions. The company plans to present the necessary documentation on its issuer profile, ensuring investors have access to relevant information before participating.
Insider Participation in the Offering
Some insiders of Northfield Capital are expected to partake in this financing round. This involvement will be classified as a related party transaction but is anticipated to meet the regulations set out in Multilateral Instrument 61-101, allowing the offering to proceed without mandatory approvals, given the fair market value implications.
Class B Share Issuance
In addition to the financing, Northfield Capital plans to issue up to 2,388 Class B multiple voting shares to its President and CEO, Robert Cudney, to maintain his voting interest. This issuance will occur at a price of $6.20 per share, ensuring Mr. Cudney retains his significant influence within the company post-offering.
Regulatory Approval for Issuance
The issuance of Class B shares is subject to regulatory approval, and all transactions will adhere to a four-month statutory hold post-closing. The funds raised through this issuance will also contribute to general financial resources, supporting ongoing operations.
Advisory and Legal Support
In preparation for this financing process, Northfield Capital has enlisted the expertise of Cassels Brock & Blackwell LLP as its legal counsel, with Bennett Jones LLP advising the agents, ensuring all transactions comply with legal requirements.
Who is Northfield Capital?
Founded in 1981, Northfield Capital Corporation is a publicly traded investment firm with a diverse portfolio encompassing resources, mining, aviation, and alcoholic beverages. Its innovative approach and commitment to economic growth position it as a leader in investment opportunities in Canada.
For more information about Northfield Capital and this exciting financing initiative, investors are encouraged to visit the company’s official website. They can also reach out to:
Michael G. Leskovec
Chief Financial Officer
Telephone: (416) 628-5940
Frequently Asked Questions
What is the total amount Northfield Capital aims to raise?
Northfield Capital aims to raise up to $10 million in a brokered financing.
Who is the lead agent for the offering?
Integrity Capital Group Inc. is acting as the lead agent for the financing offering.
What will the proceeds from the offering be used for?
The proceeds will be used for operational expenditures and general corporate purposes.
Who will participate in the offering?
Insiders of Northfield Capital, including CEO Robert Cudney, are expected to participate in the offering.
When is the anticipated closing date for the offering?
The offering is expected to close around early December, pending regulatory approval.
