September 23, 2022 – TheNewswire - Kelowna, British Columbia: Decisive Dividend Corporation (TSXV:DE) (“Decisive” or the “Corporation”) is pleased to announce that it has received subscription agreements for a non-brokered private placement of 1,848,364 Units at an issue price of $4.12 per Unit, which was calculated as a 7% discount to the volume weighted average trading price of the common shares of Decisive for the 30-day trading period ended September 22, 2022. Each Unit consists of one common share of the Corporation and one-half common share purchase warrant (“Warrant”), with each Warrant entitling the holder thereof to purchase one common share at a price of $4.94, a 20% premium to the issue price, for a period of 24 months following the closing of the private placement.

 

The lead subscribers of the private placement are investment funds managed by Waratah Capital Advisors Ltd. (‘Waratah”), which collectively subscribed for 1,638,350 Units. Subsequent to the closing of the private placement, funds managed by Waratah will hold 14% of the outstanding common shares of Decisive. Insiders of the Corporation (or associated persons) also subscribed for 72,814 Units.

 

The proceeds of the private placement will be used for general corporate purposes, which may include debt reduction or the funding of future acquisitions from Decisive’s active and growing pipeline of potential acquisition targets.

 

In connection with the closing of the private placement, the Corporation and Waratah will enter into an investor rights agreement which provides Waratah with the right to maintain, on behalf of funds managed by it, its proportionate share ownership in the Corporation, on a fully diluted basis.

Jeff Schellenberg, Chief Executive Officer of Decisive, noted:

 

“We are pleased to have successfully completed an offering of this magnitude under current capital market conditions.  Further, to complete it with the backing of a prominent institutional investor with the reputation and performance track record of Waratah, is a validation of our business model, performance and future potential.  

 

Waratah’s commitment to help support our future growth, as evidenced by the right to maintain their current share ownership percentage level along with the warrants they have subscribed for as part of their Unit investment, provides direct line of sight to further equity financing availability as we execute on our acquisition growth plan.  

 

Together with the renewal, extension and upsize of our credit facilities announced earlier this month, this private placement provides us with further balance sheet strength and increased flexibility to continue pursuing our strategic objectives. We have an active and growing pipeline of potential targets and are committed to continue growing through acquisition. We look forward to providing further updates to our shareholders as we progress on these opportunities.”

 

Brad Dunkley, Chief Investment Officer of Waratah, noted:

 

“As family-owned enterprises look at succession planning in the coming years, we believe Decisive offers a compelling opportunity for entrepreneurs to place their businesses in good hands. We look forward to investing in this opportunity alongside Jeff and his team as significant shareholders in Decisive.”

 

The private placement is scheduled to close as announced on September 27, 2022, subject to receipt of final approval of the TSX Venture Exchange. There are no commissions or finder’s fees associated with this private placement.

  

About Waratah Capital Advisors Ltd.

 

Waratah Capital Advisors is a Toronto-based asset manager that specializes in alternative strategies. Waratah manages over $4 billion in assets from high-net-worth individuals, family offices, foundations, Canadian bank platforms, and pension funds. With a team of 54 experienced professionals, Waratah combines intensive research-driven stock selection with a disciplined and robust risk management program. Founders and employees collectively represent over $219 million of the firm’s assets under management.

 

About Decisive Dividend Corporation

 

Decisive Dividend Corporation is an acquisition-oriented company, focused on opportunities in manufacturing. The Corporation’s purpose is to be the sought-out choice for exiting legacy-minded business owners, while supporting the long-term success of the businesses acquired, and through that, creating sustainable and growing shareholder returns. The Corporation uses a disciplined acquisition strategy to identify already profitable, well-established, high quality manufacturing companies that have a sustainable competitive advantage, a focus on non-discretionary products, steady cash flows, growth potential and established, strong leadership.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

 

Jeff Schellenberg, Chief Executive Officer

#260 – 1855 Kirschner Road

Kelowna, BC V1Y 4N7

Telephone: (250) 870-9146

  

Cautionary Statements

 

Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws.

 

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 the contents of this News Release.

 

This press release contains forward-looking statements, including a statements that the proceeds of the offering may be used for debt reduction and/or future acquisitions. Forward-looking statements are necessarily based upon a number of expectations and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies, many of which are beyond the Corporation’s control and many of which are subject to change. Readers are cautioned to not place undue reliance on forward-looking statements which only speak as to the date they are made and are subject to risks, uncertainties and assumptions  In particular, there is no assurance as to the use of proceeds of the private placement and no assurance that the Corporation will use the proceeds to make a future acquisition of a company in the Corporation’s active and growing pipeline of potential target companies.  Although management believes that the expectations and assumptions underlying such forward-looking statements are reasonable, there can be no assurance that such expectations or assumptions will prove to be correct. A number of factors could cause actual future results, performance, achievements and developments of the Corporation to differ materially from anticipated results, performance, achievements and developments expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof and the Corporation is not obligated to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.