easyhome Ltd.
TSX : EH

easyhome Ltd.

October 21, 2013 07:58 ET

easyhome Announces $20 Million Bought Deal Equity Financing

TORONTO, ONTARIO--(Marketwired - Oct. 21, 2013) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

easyhome Ltd. (TSX:EH) (the "Company" or "easyhome") has today entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to buy and sell to the public 1,346,900 common shares ("Common Shares") of the Company at a price of $14.85 per Common Share, for gross proceeds to the Company of $20,001,465 (the "Offering"). The Underwriters will also have the option, exercisable in whole or in part at any time up to 30 days after the closing of the Offering, to purchase up to an additional 202,035 Common Shares of the Company. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the Offering will be $23,001,685. Closing of the Offering is expected to occur on or about November 8, 2013 and is subject to regulatory approval including that of the TSX Exchange.

The Common Shares to be issued under the Offering will be offered by way of a short form prospectus in all provinces in Canada, except Quebec, and certain other jurisdictions.

The net proceeds of the Offering will be used to fund growth initiatives in its easyfinancial services business and for general corporate and working capital purposes.

"The additional capital will allow us to capture more of the strong demand for alternative sources of consumer financing in the Canadian marketplace and continue growing our financial services business through all of 2014", said Steve Goertz, easyhome's Chief Financial Officer. "The increase in our equity will also strengthen our balance sheet which should assist us in securing additional financing when required in the future."

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

About easyhome

As at July 31, 2013, easyhome Ltd. operated 186 easyhome leasing stores (including 9 consolidated franchise locations), 108 easyfinancial locations and had 50 franchise locations.

easyhome Ltd. is Canada's largest merchandise leasing Company, offering top quality, brandname household furnishings, appliances and home electronic products to consumers under weekly or monthly leasing agreements through both corporate and franchise stores. In addition, the Company is a leading provider of consumer loans as an alternative to traditional banks and payday lenders through its easyfinancial Services business. easyhome Ltd. is listed on the TSX under the symbol 'EH'. For more information, visit www.easyhome.ca.

Forward-Looking Statements

This news release includes forward-looking statements about easyhome Ltd., including about the expected closing date and use of proceeds of the Offering. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects', 'anticipates', 'intends', 'plans', 'believes' and similar expressions. Forward-looking statements are based on certain factors and assumptions, including that all approvals for the Offering will be obtained within the period of time expected and closing conditions will be satisfied are inherently subject to, among other things, risks and uncertainties about the Offering and our operations, economic factors and the industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by us, due to, but not limited to important factors such as the risk that the Offering may not be completed as contemplated. We caution that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements, which may not be appropriate for other purposes. We are under no obligation (and expressly disclaim any such obligation) to update or alter the forward-looking statements whether as a result of new information, future events or otherwise, unless otherwise required by law.

Contact Information

  • easyhome Ltd.
    David Ingram
    President & Chief Executive Officer
    (905) 272-2788

    easyhome Ltd.
    Steve Goertz
    Senior Vice President and Chief Financial Officer
    (905) 272-2788
    www.easyhome.ca