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HIRE Technologies closes oversubscribed private placement that raised C$2.4M to fund new acquisitions and investments

The Toronto-based recruitment firm sold unsecured convertible debentures with an interest rate of 9% per year that will mature in July 2023

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HIRE CEO Simon Dealy said the financing puts 'us in a good place to execute on our strategy for the remainder of 2020'

HIRE Technologies Inc (CVE:HIRE) announced Monday it has closed on an oversubscribed non-brokered private placement that raised gross proceeds of C$2,419,000 to fund new acquisitions and investments. 

The Toronto-based recruitment firm sold unsecured convertible debentures that will bear an interest rate of 9% per year and will mature at the end of July 2023.

"We had overwhelming interest for this round of financing, including from our board of directors and officers,” HIRE CEO Simon Dealy said in a statement.

READ: HIRE Technologies says its flexible staffing solutions anchored steady Q1 revenue despite pandemic

“The proceeds will help us fund additional acquisitions, make strategic investments, and provide working capital to our operating companies, putting us in a good place to execute on our strategy for the remainder of 2020. The staffing market is proving resilient and we are positioned for further growth despite uncertainty in the markets," Dealy added. 

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, comprising 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 also said it has granted an aggregate of 1,423,000 stock options to three directors, three officers, one of whom is a consultant, and 15 employees of the company for the purchase of up to an aggregate of 1,423,000 common shares.

Each option is exercisable for a period of five years at an exercise price of $0.39 per share. Common shares issuable upon the exercise of the options granted to the three directors and three officers will be subject to a TSX Venture Exchange hold period of four months and one day from the date of grant of the options.

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

Quick facts: HIRE Technologies Inc.

Price: 0.7 CAD

TSX-V:HIRE
Market: TSX-V
Market Cap: $33.76 m
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