TORONTO, Nov. 16,
2022 /CNW/ - E Automotive Inc. d/b/a EINC (TSX: EINC)
("EINC" or the "Company") announced today that it
intends to complete a non-brokered private placement offering (the
"Private Placement") of 4,814,100 common shares
("Shares') to Intercap Equity Inc.
("Intercap") at a price of C$4.23 per Share for aggregate gross proceeds of
C$20,363,643.
The Private Placement remains subject to the final approval of
the Toronto Stock Exchange (the "TSX") and is expected to be
completed on or about November 18,
2022. EINC intends to use the proceeds of the Private
Placement to execute on its previously announced growth strategy
and for working capital purposes.
As at the date of this news release, Intercap beneficially owns
or directly or indirectly exercises control or direction over an
aggregate of 33,338,618 Shares, representing 69.3% of EINC's
48,141,274 issued and outstanding Shares. Assuming the Private
Placement is completed, Intercap will beneficially own or directly
or indirectly exercise control or direction over an aggregate of
38,152,718 Shares, representing 72.1% of EINC's 52,955,374 issued
and outstanding Shares after the Private Placement is completed.
Jason Chapnik, a director of EINC,
owns all of the equity interests of Intercap. James Merkur, a director of EINC, is an officer
of Intercap.
The issuance of Shares to Intercap will constitute a "related
party transaction" within the meaning of Multilateral Instrument
61-101 – Protection of Minority Securityholders in Special
Transactions ("MI 61-101").
The Private Placement will be completed in reliance on
exemptions from the formal valuation and minority shareholder
approval requirements of MI 61-101 since neither the fair market
value of the Shares to be issued nor the consideration to be paid
for the Shares subscribed for by related parties of EINC will
exceed 25% of EINC's market capitalization.
The Private Placement has been approved by EINC's board of
directors, with Jason Chapnik and
James Merkur of Intercap abstaining
from voting thereon.
About EINC
EINC's mission is to optimize the online vehicle buying,
selling, and management experience for automotive dealers and
consumers. EINC has a digital platform (the "Platform") that
provides automotive dealerships with access to an online wholesale
auction marketplace where they can purchase or sell vehicles to
other dealers, as well as access innovative software solutions to
support dealers' digital retailing and inventory management. Access
to EINC's Platform is complemented by ancillary service offerings
to assist dealers with supplementary auction-related needs,
including driving consumer traffic to their digital properties and
optimizing other business processes. E Inc.'s digital wholesale
marketplace goes to market under the brand EBlock, and EINC's
digital retail suite of products goes to market under the brand
EDealer.
Cautionary Statement Regarding Forward-Looking
Information
This news release may contain forward-looking information within
the meaning of applicable securities legislation, including
statements regarding the expected closing date of the Private
Placement and the anticipated use of proceeds. This information
reflects EINC's current expectations regarding future events and in
some cases can be identified by terms such as "will", "may",
"expected" and other similar expressions. Forward-looking
information is based on a number of assumptions and is subject to a
number of risks and uncertainties, many of which are beyond EINC's
control, that could cause actual results and events to differ
materially from those that are disclosed in or implied by such
forward-looking information. Information contained in
forward-looking information is based upon certain material
assumptions. While management of EINC considers these assumptions
to be reasonable based on currently available information, they may
prove to be incorrect. EINC does not undertake any obligation to
update such forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law. This forward-looking information speaks
only as of the date of this news release.
SOURCE E Automotive Inc.