BuildDirect Announces Closing of Its Non-Brokered Private Placement for Proceeds of $7.0 Million

Core Viewpoint - BuildDirect.com Technologies Inc. successfully closed a non-brokered private placement, raising gross proceeds of $7,000,250 through the issuance of 6,087,173 common shares at a price of $1.15 per share, aimed at supporting the company's growth strategy and general working capital [1][2][3]. Group 1: Private Placement Details - The private placement involved the issuance of 6,087,173 common shares at a price of $1.15 each, resulting in gross proceeds of $7,000,250 [2]. - The net proceeds from the private placement will be utilized for the company's growth strategy and general working capital [2]. - All shares issued are subject to a four-month hold period ending December 2, 2025, in accordance with applicable securities laws [2]. Group 2: Shareholder Participation - Major shareholders Pelecanus Investments Ltd., Lyra Growth Partners Inc., and Beedie Investments Ltd. participated in the private placement, purchasing 855,625, 328,858, and 303,561 common shares, respectively [3]. - The participation of insiders in the private placement constitutes a related party transaction, but the company is exempt from formal valuation and minority approval requirements under MI 61-101 [3]. - Following the private placement, the ownership percentages of the major shareholders are 38.9% for Pelecanus, 15.0% for Lyra, 13.8% for Beedie, 0.3% for Eyal Ofir, and 3.6% for CEO Shawn Wilson [3]. Group 3: Company Overview - BuildDirect is an expanding omnichannel building materials retailer, focusing on Pro Centers designed to serve professional contractors and trades [6]. - The company is actively scaling its operations through a combination of organic growth and strategic acquisitions, aiming to drive efficiency and market expansion [6].