Bank of Montreal (BMO) said it has successfully launched a pilot fixed income issuance transaction, mirrored on a blockchain platform alongside Ontario Teachers' Pension Plan. The transaction saw BMO sell $250 million of one-year floating rate deposit notes to Ontario Teachers’. It represents the first Canadian dollar fixed income issuance showing the viability of blockchain platforms, the bank said. BMO Capital Markets designed and built a blockchain issuance system using open-source blockchain infrastructure with the goal of testing a settlement system.
3 min read · 16 August 2018
Vancouver-based financial technology company Progressa said it closed a debt and equity financing of C$84 million. Canaccord Genuity and Gravitas Securities led the equity funding. They were joined by a syndicate that included Eight Capital and Paradigm Capital. The investment facilitates a loan purchasing program of up to C$72 million with Cypress Hills Partners, a Canadian merchant banking firm. Progressa said it expects the private round to be its last, as the company has begun preparing for an initial public offering next year. Founded in 2013 and led by CEO Ali Pourdad, Progressa is an alternative lender focused on helping consumers resolve overdue bills and other outstanding debts.
5 min read · 16 August 2018
Canaccord Genuity Growth Corp (CGGC), a Canadian special purpose acquisition corporation (SPAC), has filed a preliminary prospectus with regulatory authorities outside of Québec for an initial public offering. The IPO is for Class A restricted voting units at a price of $3 per unit. The number of units on offer was not released. CGGC, managed by an affiliate of Canaccord Genuity Group Inc, is expected to target an operating business valued at $50 million to $250 million. Last year, Canaccord Genuity Acquisition Corp raised $30 million from its IPO. Earlier in 2018, the SPAC agreed to merge with Spark Power Corp, an electrical power services and solutions company.
5 min read · 15 August 2018
Electrobac, a Montréal-based electronics recovery technology company, has closed a seed-stage financing of $1 million. The round's investors were Fondaction and Ecofuel Fund, a seed investment affiliate of Cycle Capital Management. Founded in 2011 by CEO Philip Bénard, Electrobac implements and manages a network of smart recycling bins for small, end-of-life electronics. It also offers businesses a buyback scheme for mobile devices. The company said it will use the funds raised to expand into new markets, including Ontario and British Columbia, double the size of the team, and enhance its platform.
4 min read · 15 August 2018
Province Brands of Canada, a Toronto-based cannabis beverage company, has raised $10.95 million in a Series A financing. The round, which brings the company's total funding to more than $15 million, was backed by 91 accredited investors. It was structured as a convertible note. Founded in 2016 by CEO Dooma Wendschuh and CCO Jennifer Dianne Thomas, Province Brands is developing a suite of non-alcoholic, cannabis-based beers and spirits. The company said it is planning to raise a Series B round of $20 million to $30 million to coincide with its listing on the TSX Venture Exchange. The listing will be achieved through a reverse takeover.
3 min read · 15 August 2018
U.S. Lumber LLC has agreed to acquire Alexandria Moulding, an Alexandria, Ontario-based maker and distributor of mouldings and accessories in Canada and the United States. Terms weren't released for the deal, which is expected to close in October. Alexandria Moulding will continue to be led by existing management, with President and CEO Andre Cholette joining U.S. Lumber's board. The company has been backed since 2016 by U.S. private equity firm Industrial Opportunity Partners (IOP). U.S. Lumber, an Atlanta-based distributor of building materials, secured an investment last year from U.S. private equity firm Madison Dearborn Partners (MDP).
4 min read · 15 August 2018
Great Rock Capital, a U.S. asset-focused commercial finance firm, has hired Jeffrey Peckitt as managing director of originations. Peckitt joins Great Rock from MaynBridge Capital, a Canadian transitional lending firm, where he served as a vice president responsible for mid-market originations. Based in Toronto, Peckitt will source new investment opportunities for Great Rock, helping to expand the firm's presence locally and across Canada.
2 min read · 15 August 2018
Qindom, a Toronto-based quantum intelligence startup, has raised about $2.6 million (US$2 million) in a seed-stage financing. The round was led by an angel investor, identified as one of the early limited partners of Sequoia Capital. Launched in January, Qindom is a quantum intelligence research and application service provider. It aims to apply quantum computing technologies to solve complex combinatorial optimization problems in industrial scenarios. Yao Wang, a Qindom co-founder and former Alibaba Group manager, said the funds raised will support the company's strategic development.
3 min read · 14 August 2018
Montréal-based wood products company Stella-Jones Inc (TSX: SJ) has closed an $876.5 million secondary offering and private placement that bought the remaining interest held by its principal shareholder, Stella Jones International SA. The deal, announced in July, included a $533 million private placement through which shares were sold to British Columbia Investment Management Corp, Caisse de dépôt et placement du Québec, Fonds de solidarité FTQ, GPI Capital, Ontario Municipal Employees Retirement System and President and CEO Brian McManus. Following the transactions, founding partners Tom Bruce Jones and Gianni Chiarva stepped down as chairman and vice-chairman.
3 min read · 14 August 2018
Impak Finance, a Montréal-based social impact financial technology company, has raised $1.1 million in financing. The round was backed by Anges Québec, Anges Québec Capital and several private investors from Canada and France. Investors Claude Chagnon, Didier Kuhn, Michel Lozeau and Daniel Paillé have joined the board. Led by CEO Paul Allard, who co-founded the company in 2016, Impak is building an application and marketplace to facilitate and reward socially and environmentally responsible purchases from impact enterprises. Buyers who use Impact's application receive impak coins, a social impact digital currency.
4 min read · 14 August 2018
