First Ever Company to Utilize Dealsquare and Frontfundr for Pre-Go-Public Private Placement
Lendified Holdings Inc. (“Lendified”), a FinTech company operating a lending platform for small businesses and a SaaS technology platform providing AI-enabled credit origination and analytics to financial institutions, previously launched a $4 million private placement and today made the offering available on DealSquare and FrontFundr. DealSquare is powered by NEO Connect technology, ensuring all private placement investments completed on DealSquare will be fully integrated into portfolio accounts and back office systems.
This is a revolutionary development for Canada’s capital markets, as it’s the first time a company in a pre-public listing phase has made its private financing round available to a broader range of investors, including the retail community. As announced in their January 20, 2020 press release, Lendified is completing a reverse takeover of Hampton Bay Capital Inc. and a concurrent private placement financing, with a goal to go public later this year.
DealSquare is Canada’s recently launched B2B private markets platform developed in a partnership between Silver Maple Ventures Inc. and NEO Connect. DealSquare simplifies the current private placement and related due diligence process for dealers and investment advisory networks. Investment Advisors on DealSquare have the ability to electronically subscribe to a private placement, with seamless integration of subscribed for exempt securities into their client accounts and back office systems.
FrontFundr is Canada’s leading equity crowdfunding platform and an exempt market dealer and provides a community of over 15,000 retail investors with the ability to review and complete private placements on one digital platform. FrontFundr is a participating dealer on the DealSquare platform.
“Lendified’s listing on DealSquare is a ground-breaking development for the private markets. On top of that, by leveraging FrontFundr, the average Canadian investor will be able to invest in a Canadian company before a potential public listing, something previously only available to accredited investors,” says Peter-Paul Van Hoeken, Founder and CEO of Silver Maple Ventures Inc. “It is a great example of how we are democratizing the private markets, by giving retail investors the ability to invest in start-ups or established private companies like Lendified about to go public.”
“We congratulate Lendified for being the first mover in Canada to make a pre-go-public private placement offering available to all investors in an efficient and accessible manner,” adds Jos Schmitt, President and CEO, NEO. “Private markets have become a major part of capital markets globally. Our objective with DealSquare is to automate the private placement process and fully integrate into the dealer and investment advisor workflow so efficiencies, cost savings and reduced operational risks can be realized. It’s about building a better investor experience. DealSquare is also beneficial to capital-raising companies and their investors. We are providing an alternative way to raise capital and giving end-investors access to a world of opportunities that is often not within their reach.”
“Listing our private placement on DealSquare and benefitting from the outreach to retail investors that FrontFundr allows for, is a unique opportunity for Lendified to access more investors previous to completing a public offering process”, states Troy Wright, Founder and CEO of Lendified.