Eddy Smart Home Solutions’ Brokered Private Placement

Torys LLP acted as counsel to Eddy Smart Home Solutions.

On September 13, 2021, Eddy Smart Home Solutions Inc. announced a plan to enter into an agency agreement with Canaccord Genuity Corp., as lead agent, and INFOR Financial Inc. (together with Canaccord Genuity Corp., the “Agents”) to execute a brokered private placement of a minimum of 16,666,667 and a maximum of 25,000,000 subscription receipts at a price of C$0.60 per receipt for aggregate gross proceeds of a minimum of C$10,000,000 and a maximum of C$15,000,000.

Under the terms of the agency agreement, Eddy will grant the agents an option to purchase up to an additional 3,750,000 subscription receipts, exercisable in whole or in part at any time prior to the initial closing of the private placement, on the same terms, for additional gross proceeds of up to C$2,250,000.

Closing of the first tranche of the private placement was announced on September 15, 2021, in which an aggregate of 17,615,269 subscription receipts were placed for aggregate gross proceeds of C$10,569,161.

The net proceeds from the first tranche will be used for the purchase of hardware, sales and marketing and for general working capital. The proceeds will be held in escrow pending satisfaction of certain conditions related to Eddy’s three-cornered amalgamation with 2865357 Ontario Inc., a wholly-owned subsidiary of Aumento Capital VIII Corporation (“Aumento”), and Aumento. Upon the satisfaction of the same conditions, each subscription receipt will be automatically converted, without additional consideration or any further action on the part of the holder thereof, into two (2) common shares in the capital of Eddy. Pursuant to the terms of the agreement each Eddy common share will be exchanged for common shares in the capital of the resulting issuer on the basis of 0.504867 common shares for each Eddy share held.

Eddy is a Toronto-based award-winning innovative manufacturer of smart water metering products and related technologies, helping property owners protect, control, and conserve water usage by combining water sensing devices with behavioural learning software. 

The Torys’ team included Janan Paskaran (Picture), Kate Stevens, Sarah Magee and Megan Funke (corporate/securities).

Involved fees earner: Megan Funke – Torys LLP; Sarah Magee – Torys LLP; Janan Paskaran – Torys LLP; Kate Stevens – Torys LLP;

Law Firms: Torys LLP;

Clients: Eddy Smart Home Solutions ;

Author: Martina Bellini