Tribe Property closes oversubscribed $21M brokered financing with investment from Round13 Growth Fund

Tribe Property Technologies Inc announced that it has closed its previously announced brokered financing with the property technology company raising aggregate gross proceeds of $21 million from the sale of units of the company at a price of $4 per unit.

The Vancouver-based company, which is digitizing the traditional property management industry, said that the funds will be used for executing on its “acquisition pipeline, working capital and general corporate purposes.”

Round13 Growth Fund, a late-stage growth equity investment fund, part of the Round13 Capital family of funds, was the lead investor for the financing and subscribed for $10 million worth of units.

The total included proceeds raised from the full exercise of the option granted to the agents, said the company.

READ: Tribe Property announces $15M brokered financing and strategic investment from Round13 Growth Fund

“We’re delighted that our private placement was oversubscribed and excited by the support we’ve received from the investment community. This financing is a clear vote of confidence in the milestones Tribe has achieved, and our roadmap for the future,” Tribe CEO Joseph Nakhla said in a statement.

“This financing, led by Round13, enables the company to continue to execute on our acquisition pipeline, while advancing the deployment of our new products and services to the growing condo and rental market,” he added.

Meanwhile, Sanjiv Samant, a managing partner at Round13 Capital, noted that the digitization of the property management industry is “long overdue”

“We expect Tribe will lead a significant transformation across the industry,” said Samant.

The offering was led by Stifel GMP as sole bookrunner and together with Cormark Securities Inc, as co-lead agents and on behalf of a syndicate of agents including Laurentian Bank Securities, Eight Capital and PI Financial Corp. Stifel acted as a financial advisor in connection with the strategic investment by Round13.

The company said each unit in the offering consisted of one share and one share purchase warrant. Each warrant entitles the holder to get one share at a price of $5.10 per warrant share until January 14, 2025, subject to adjustment in certain events.

All securities issued are subject to a statutory hold period of four months, plus a day expiring on May 15, 2022.

In connection with the offering, Tribe paid to the agents a cash fee of $1.10 million and issued the agents 299,248 compensation warrants. Each broker warrant entitles the holder to acquire one common share at a price of $5.10 per broker share, until January 14, 2025, subject to adjustment in certain events.

The company said Round13 has been provided with certain rights, including the right to nominate one director and one qualified independent director to the board at the next annual general shareholder or special meeting.

Tribe manages approximately 40,000 homes made up of more than 100,000 residents. The company’s proprietary community management software Tribe Home is integrated into every community with its ability to connect, inform, educate and protect through the digitization and simplification of residential community living.

Contact the author Uttara Choudhury at [email protected]

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Story by ProactiveInvestors