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Hampton Financial Corp
Symbol HFC
Shares Issued 15,410,370
Close 2022-11-28 C$ 0.68
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Hampton Financial closes debenture financing

2022-11-30 18:25 ET - News Release

Mr. Peter Deeb reports

HAMPTON FINANCIAL CORPORATION ANNOUNCES COMPLETION OF FINAL TRANCHE OF SECOND NON-BROKERED PRIVATE PLACEMENT OF UNSECURED CONVERTIBLE DEBENTURES

Hampton Financial Corp. has closed the second and final tranche of a non-brokered private placement of unsecured convertible debentures in the principal amount of $385,000. The closing of the second and final tranche is part of a larger additional offering of debentures in the aggregate principal amount of up to $5.5-million. Pursuant to the offering, Hampton completed two tranches of debentures in the aggregate principal amount of $3,021,000, with the completion of the first tranche having been announced on Nov. 7, 2022. Hampton had also announced on Oct. 11, 2022, the completion of a separate prior offering of similar debentures in the aggregate principal amount of $4,663,000.

The debentures will mature five years after the issue date and will bear interest at the rate of 9.0 per cent per annum, payable quarterly in arrears on the last day of March, June, September and December in each year until the maturity date. The first interest payment will be made at the end of the first calendar quarter following the closing date and will consist of interest accrued from and including the closing date to the initial interest payment date. Interest will be payable in cash only and will cease to accrue on the maturity date.

The whole or any part of the principal amount of the debenture is convertible into subordinate voting shares of the corporation, at the option of the holder thereof, at any time prior to 4 p.m. Toronto time on the maturity date, at a conversion price of 60 cents per share. Upon conversion of the debentures, the holders of debentures will receive cash payment of any interest, which accrues from the most recent interest payment date to the date of conversion.

Of the proceeds from the offering, $2-million was used to retire $2-million of 12 per cent unsecured notes that had been issued by the corporation. The balance of the funds raised will be used for working capital and general corporate purposes.

The debentures and any subordinate voting shares issued upon the conversion thereof are subject to a hold period expiring on the date that is four months and one day following the date of issuance of the debentures, in accordance with applicable securities legislation.

In connection with the closing of the second tranche of the offering, the corporation paid a finder's commission to a registrant consisting of a cash commission of $19,250, together with 32,083 warrants, with each warrant being exercisable to purchase one subordinate voting share of the corporation at the price of 60 cents per share on or before the day that is three years from the date of warrant issue. The warrants and any subordinate voting shares issued upon the conversion thereof are subject to a hold period expiring on the date that is four months and one day following the date of issuance of the warrants, in accordance with applicable securities legislation. In the aggregate, the corporation paid finders commissions in the amount of $151,050 and 251,750 warrants pursuant to both tranches of the offering.

The corporation had filed a price reservation form (Form 4A) dated Oct. 18, 2022, with the TSX Venture Exchange. The TSX-V has issued conditional acceptance of the offering. The offering remains subject to receipt of final acceptance by the TSX-V.

About Hampton Financial Corp.

Hampton Financial is a unique private equity firm that seeks to build shareholder value through long-term strategic investments. Through its wholly owned subsidiary, Hampton Securities Ltd. (HSL), Hampton is actively engaged in family office, wealth management, institutional services and capital markets activities. HSL is a full-service investment dealer, regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and registered in Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, Northwest Territories, Ontario and Quebec. In addition, the company provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on a recognized securities exchange in Canada.

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