Neighbourly Pharmacy (TSX: NBLY) is evidently looking to provide its early investors with a way out of its equity. The firm last night announced a bought deal financing, the majority of which will see shares sold as a secondary offering.
Under the terms of the financing, a total of 4.23 million common shares are to be sold at a price of $30.75 per common share. Gross funds from the financing are expected to amount to $130 million, of which $100 million, or 3.3 million shares, will be sold under a secondary offering by shareholders of the company. Gross proceeds to the company are meanwhile to amount to just $30 million.
An over allotment option of 15% has also been granted by the selling shareholders.
Net proceeds to the company are slated to strengthen the firms financial position, while a portion is expected to be used for acquisitions.
Following the completion of the financing, it is expected that Persistence Capital Partners, whom currently owns 63.1% of the company, will see its ownership dip down to 51.9%, with the firm retaining 17.8 million common shares.
It should be noted that the secondary offering is required by the company due to the extremely low daily volume of trading in Neighbourly, which currently sits at roughly 7,403 shares per day.
Finally, the company also released preliminary Q2 results, with the firm estimating revenue of $90.7 million, a net loss of $3.4 million, and adjusted EBITDA of $10.0 million for the quarter.
Neighbourly Pharmacy last traded at $33.01 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
