Proceeds to be used for strategic partnership
advancement, talent acquisition, and operations expansion
CALGARY,
AB, April 20, 2022 /CNW/ - Renoworks
Software Inc. (TSXV: RW) ("Renoworks" or "the
Company"), the leading end-to-end visualization and lead
generation platform for the home remodeling and new home
construction industry, announces that it has completed a private
placement (the "Private Placement") raising $805,000 (up from the initially announced
intention to raise $750,000) via the
issuance of 1,610,000 units (each a "Unit") at a price of
$0.50 per Unit. Each Unit is
comprised of one common share in the capital of Renoworks (a
"Common Share") and one-half of one common share purchase warrant
(each whole common share purchase warrant, a "Warrant"). Each
Warrant entitles the holder to purchase one Common Share at a price
of $0.60 per Common Share at any time
prior to 4:00 p.m. (Mountain Standard
Time) on October 20, 2023. The
Common Shares and Warrants issued in connection with the Private
Placement are subject to a four (4) month hold period from the
closing date, as prescribed by TSX Venture Exchange and applicable
securities laws. The closing of the Private Placement remains
subject to receipt of final TSX Venture Exchange acceptance.
"Our investors' incredible support reflects a great deal of
confidence in our Company and long-term objectives," stated
Doug Vickerson, CEO of Renoworks.
"We remain dedicated to pushing the home remodeling industry
forward while accelerating our growth through the many strategic
opportunities ahead of us. The additional proceeds will be utilized
to progress our strategies to grow revenue, enter and advance
strategic partnerships, expand sales and marketing channels, and
hire personnel that will evolve the platform."
Mr. Vickerson continued: "Renoworks finds itself in an unrivaled
position, owing to its ability to work as a crucial strategic
partner with key customers and partners in the building products
and technology industries. We have many opportunities to
collaborate with various players in the market by combining our
technologies to create new offerings, improving value chain
efficiencies, enhancing marketability of our partners, monetizing
data assets and expanding our reach into new and existing segments
to further our growth and reach our expansion goals."
2022/2023 EXPANSION
The demand for digital technologies in the home remodeling and
construction sector has grown significantly in the past few years.
In response, Renoworks has created and commercialized new solutions
and ancillary services to capitalize on the industry's momentum
toward digital adoption, including data science offerings and
platform improvements.
After years of collecting and analyzing consumer data across the
home remodeling sector, the Company is now positioned to monetize
this data and increase revenue for Renoworks, its partners and
customers. The combination of this dataset with Renoworks'
machine learning/artificial intelligence technologies is enabling
customers to target and identify potential buyers, increasing lead
and sales conversion. This new capability should lead to an
expansion of revenue generated per customer. This financing
secures the capital needed for the company to expand as it
continues to invest in its go-to-market strategy, technology
roadmap, and other key initiatives.
Use of proceeds will go towards strengthening the Company's
operational efficiency and support long-term growth through the
acquisition of new talent and skilled labor to accelerate key
initiatives. Renoworks will also invest in important strategic
partner integrations for market expansion.
Early Warning Disclosure
Pursuant to the abovementioned Private Placement, on
April 4, 2022 a company controlled by
Nairn Nerland of Okotoks, Alberta, a director of Renoworks,
acquired 200,000 Units (200,000 Common Shares and 100,000
Warrants). Prior to the transaction, Mr. Nerland beneficially owned
or controlled 5,269,666 Common Shares and options to acquire up to
276,933 additional common shares, representing 14.2% of the
outstanding Common Shares (14.1% assuming exercise of the
options). Upon completion of the transaction, Mr.
Nerland beneficially owned or controlled 5,469,666 Common Shares,
100,000 Warrants and options to acquire up to 276,933 additional
common shares, representing 13.45% of the outstanding Common Shares
(14.25% assuming exercise of the Warrants and the options). The
Units have been acquired and are being held for investment
purposes. In the future, Mr. Nerland may, depending on the market
and other conditions, increase or decrease his beneficial ownership
or control of securities of Renoworks. A copy of the early warning
report filed by Mr. Nerland under applicable Canadian securities
laws can be obtained at www.sedar.com under the company's profile
or by contacting the company as set out below.
Also pursuant to the abovementioned Private Placement, on
April 4, 2022 Robert Schulz of
Calgary, Alberta, a director of
Renoworks, acquired 60,000 Units (60,000 Common Shares and 30,000
Warrants). Prior to the transaction, Mr. Schulz beneficially owned
or controlled 5,391,416 Common Shares and options to acquire up to
198,222 additional common shares, representing 13.81% of the
outstanding Common Shares (14.24% assuming exercise of the
options). Upon completion of the transaction, Mr.
Schulz beneficially owned or controlled 5,451,416 Common Shares,
30,000 Warrants and options to acquire up to 198,222 additional
common shares, representing 13.41% of the outstanding Common Shares
(13.94% assuming exercise of the Warrants and the options). The
Units have been acquired and are being held for investment
purposes. In the future, Mr. Schulz may, depending on the market
and other conditions, increase or decrease his beneficial ownership
or control of securities of Renoworks. A copy of the early warning
report filed by Mr. Schutz under applicable Canadian securities
laws can be obtained at www.sedar.com under the company's profile
or by contacting the company as set out below.
Related Party Transaction
Disclosure
As cited under the Early Warning Disclosure, in the Private
Placement, Renoworks issues 200,000 Units ($100,000) to a company controlled by
Nairn Nerland and 60,000 Units
($30,000) to Robert Schulz, both of whom are directors of the
company. This participation by insiders of the company in the
Private Placement is exempt from the valuation and minority
shareholder approval requirements of Multilateral Instrument 61-101
("MI 61-101") by virtue of the exemptions contained in sections
5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value of
the Units issued to such insiders does not exceed 25% of the
company's pre-transaction market capitalization.
About Renoworks
Renoworks Software Inc. develops and sells unique digital
visualization software and integration solutions for the remodeling
and new home construction industry. Renoworks delivers its
technology to manufacturers, contractors, builders, and retailers
offering solutions to one of the home improvement industry's
greatest challenges: enabling homeowners to review their product
selections in a hyper-realistic, virtual environment before
committing to purchases and construction. Renoworks markets its
technologies as an innovative engagement, sales, and marketing
platform and generates revenues from five main business lines:
Renoworks Enterprise, Renoworks PRO, Renoworks Design Services,
Renoworks FastTrack, and Renoworks API (Application Programming
Interface). For more information, visit www.renoworks.com and
www.renoworkspro.com.
Forward-Looking
Information
Certain statements in this news release, other than statements
of historical fact, are forward-looking information that involves
various risks and uncertainties. Such statements relating to, among
other things, Renoworks' intention to complete a private placement
of units to raise up to $750,000, are
forward-looking and are necessarily subject to risks and
uncertainties, some of which are significant in scope and nature.
There is no assurance that Renoworks will be able to raise
$750,000, or any lesser amount, on
the terms and conditions proposed. Further, there is no
assurance that Renoworks will be able satisfy any conditions to
closing the Private Placement that may arise. These
uncertainties may cause actual results to differ from information
contained herein. There can be no assurance that such statements
will prove to be accurate. Actual results and future events could
differ materially from those anticipated in such statements. These
and all subsequent written and oral forward-looking statements are
based on the estimates and opinions of the management on the dates
they are made and expressly qualified in their entirety by this
notice. Renoworks assumes no obligation to update forward-looking
statements should circumstances or management's estimates or
opinions change.
The TSX Venture Exchange does not accept responsibility for
the adequacy or accuracy of this release.
SOURCE RenoWorks Software Inc.