HIRE Technologies Inc (CVE:HIRE) is raising up to C$2.25 million to fund new acquisitions and investments, it revealed Monday.
The Toronto-based recruitment firm said it was raising the funds via a non-brokered private placement of unsecured convertible debentures that will bear an interest rate of 9% per year and will mature at the end of July 2023.
"Given how strong and resilient the revenues of the company have sustained during the pandemic, I'm very pleased to be earmarking the funds from this proposed financing to our M&A growth program,” HIRE CEO Simon Dealy told shareholders in a statement Monday.
READ: HIRE Technologies says its flexible staffing solutions anchored steady Q1 revenue despite pandemic
“The company has a strong watchlist and it is looking forward to continuing its efforts to consolidate and modernize the recruitment marketplace."
The convertible debentures will be payable semi-annually in arrears either in cash or shares (at the company’s discretion) priced at the volume-weighted average trading price on the TSX Venture Exchange for 20 consecutive trading days ending on the date immediately preceding the date of payment.
Holders may convert all or part of the debentures into units priced at C$0.30, comprised of one share and one warrant exercisable at $0.60, at any time prior to the maturity date. The company may force the conversion of debentures into units at the conversion price if shares exceed $0.65 over a 10-day consecutive trading period.
HIRE is focused on the acquisition of information technology, staffing, and HR consulting firms.
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