Tribe Property Technologies Inc. (TSX-V:TRBE) has announced plans to raise up to $15 million in a marketed offering of its units at a price of $4 per unit.
The company said Stifel GMP will be the sole bookrunner for the marketed offering and, together with Cormark Securities Inc, will act as co-lead agents and on behalf of a syndicate of agents.
Round13 Growth Fund, a highly respected, late-stage growth equity investment fund and part of the Round13 Capital family of funds, will lead the financing and subscribe for $10 million worth of units, becoming a strategic shareholder, it added.
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"To receive the support of one of Canada's leading value-added growth funds provides clear validation of our business model,” Tribe CEO Joseph Nakhla said in a statement.
“After a very successful 2021, Tribe delivered on significant growth objectives, completing and integrating four acquisitions, creating a national footprint, all while achieving substantive revenue growth. This financing allows Tribe to pursue further M&A opportunities and continue to build on its national footprint, all while advancing the deployment of our new products and services to the growing condo and rental markets.”
Round13 Growth Fund invests in growth companies where there is an opportunity for technology enablement. Key to the fund's mandate is helping bridge the late-stage growth funding gap in Canada between traditional venture capital and public market investors.
Following its investment, the fund will have the right to nominate one director to Tribe’s board of directors at its next annual general or special meeting of its shareholders. It will also be allowed to recommend a qualified independent director to the board at the same meeting.
"We are delighted to partner with Tribe's exceptional management team and help realize on Tribe's vision to digitize the property management industry," said Sanjiv Samant, managing partner of Round13 Capital.
"We are excited to support the acceleration of Tribe's robust product roadmap of property management technology tools as well as the Company's plan to bring its products to new markets via M&A.”
Under the terms of the brokered financing, each unit will consist of one common share and one common share purchase warrant, entitling the holder to acquire an additional common share for $5.10 per warrant share for 36 months following the closing of the offering.
Tribe said it agreed to grant the agents an option to increase the size of the offering by up to an additional 15% of the units sold under the offering, exercisable in whole or in part, at any time and from time to time up to 48 hours before the closing of the offering.
It said the net proceeds will be used to execute on its acquisition pipeline, and for working capital and general corporate purposes.
Tribe is a property technology company that is digitizing the traditional property management industry. As a rapidly growing tech-forward property management company, Tribe's integrated service-technology delivery model serves the needs of a much wider variety of stakeholders than traditional service providers.
Tribe's three revenue pillars are made up of software and service (recurring licensing and management fees), transactional (rent or condo fees, banking services, lease-ups) and digital services and partnership (smart building products, financial and insurance service) revenue.
Tribe manages approximately 40,000 homes made up of more than 100,000 residents. The company's proprietary community management software Tribe Home is integrated into every community with its ability to connect, inform, educate and protect through the digitization and simplification of residential community living.
Contact the author at stephen.gunnion@proactiveinvestors.com