/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
WINNIPEG, April 7, 2020 /CNW/ - 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 (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.
Neither the 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 press release.
SOURCE People Corporation