RENOWORKS PRIVATE PLACEMENT OVERSUBSCRIBED; COMPANY RAISES $805,000
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.”
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.
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.
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.
For further information:
For information on Renoworks or the Private Placement, please contact:
Renoworks Software Inc.
Attention: Doug Vickerson, CEO
For investor information for Renoworks, please contact:
Attention: Sean Peasgood, IR
Phone: (647) 670-2366
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.