E Automotive to de-list TSX shares, close C$21m private placement

• E Automotive has been trading under the symbol “EINC”
• The company also expects to complete a private placement on May 25 that will generate total proceeds of about C$21 million
• Intercap Equity, which owns or controls about 72% of E Automotive’s common shares, will account for about C$20 million

E Automotive, a Toronto, Ontario-based digital auction platform for automotive dealerships, said its common shares will be de-listed from the Toronto Stock Exchange (TSX) following the results of its May annual and special shareholders meeting. The company has been trading under the symbol “EINC”.

About 1.3 million common shares were tendered to a substantial issuer bid as part of the de-listing. E Automotive expects to take up and purchase for cancellation these shares at a price of C$3.50 per share.

E Automotive also expects to complete a private placement on May 25 that will generate total proceeds of about C$21 million.

Canadian merchant bank Intercap Equity, which owns or controls about 72 percent of the company’s common shares, will account for about C$20 million of the private placement. Four other investors will account for the balance.

About 57 million common shares are expected to be issued and outstanding after giving effect to the offer and the private placement. Intercap will own 43.86 million shares, representing about 75.94 percent of issued and outstanding shares on a non-diluted basis.

When it announced the de-listing in April, E Automotive said it considered a going-private transaction, but “determined that the benefits of a de-listing (including giving all shareholders the option to participate in any potential future upside, lower transaction costs and a shorter timeline) outweighed the benefits of a going-private transaction in the company’s current circumstances.”

E Automotive went public on TSX in 2021, raising C$136 million.