easyhome Ltd.
TSX : EH

easyhome Ltd.

December 23, 2010 08:50 ET

easyhome Ltd. Closes $11.5 Million Private Placement Offering of Common Shares

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

easyhome Ltd. (TSX:EH) ("easyhome" or the "Company") announced today that it has completed its previously announced private placement of 1,352,940 common shares ("Shares") at a price of $8.50 per Share for aggregate gross proceeds of $11.5 million. This includes 176,470 Shares issued pursuant to an over-allotment option granted to the Underwriters. The Company previously announced that it had agreed to sell the Shares on a "bought-deal" private placement basis to Raymond James Ltd., as lead underwriter and sole book-runner on behalf of a syndicate of underwriters including Cormark Securities Inc. and Paradigm Capital Inc. (the "Underwriters"). easyhome intends to use the net proceeds from the private placement to fund growth initiatives at its existing easyfinancial services kiosks and for general corporate purposes, including debt repayment.

The Company also announced that on December 22, 2010 it filed restated interim consolidated financial statements for each of the two quarterly periods of March 31, 2010 and June 30, 2010, including the respective restated comparatives, and restated annual consolidated financial statements for the year ended December 31, 2009, and the associated MD&A disclosures. The restatements were required as a result of the previously announced employee fraud at one easyfinancial services kiosk, and confirm the figures provided in the notes to the Company's previously filed interim consolidated financial statements for the period ended September 30, 2010.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

About easyhome

As at November 30, 2010, easyhome Ltd. had 254 stores, including 36 franchised/licensed locations. The Company also operated 63 easyfinancial kiosks within existing easyhome stores. easyhome Ltd. is Canada's largest merchandise leasing company and the third largest in North America, offering top quality, brand-name 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 offers a variety of financial services, including loans, prepaid credit cards and cheque cashing through its easyfinancial services business. easyhome Ltd. is listed on the TSX under the symbol 'EH'.

Forward-Looking Statements

This news release includes forward-looking statements about easyhome Ltd. including its business operations, strategy and expected financial performance and condition. 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' or negative versions thereof and similar expressions. In addition, any statement that may be made concerning future financial performance (including revenue, earnings or growth rates), ongoing business strategies or prospects about future events is also a forward-looking statement. Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations and business prospects and are inherently subject to, among other things, risks, uncertainties and assumptions about 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 our ability to enter into new lease and/or financing agreements, collect on existing lease and/or financing agreements, open new locations on favourable terms, secure new franchised locations, purchase products which appeal to our customers at a competitive rate, cope with changes in legislation, react to uncertainties related to regulatory action, raise capital under favourable terms, manage the impact of litigation (including shareholder litigation), control costs at all levels of the organization and maintain and enhance our system of internal controls. 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
    or
    easyhome Ltd.
    Steve Goertz
    Sr. VP & CFO
    (905) 272-2788