Pethealth completes $10 million placement

Oakville, Ontario-based pet insurer Pethealth Inc. (TSX VE: PTZ) has completed a private placement for aggregate proceeds of $10 million.
The placement included five million of the company’s "series 1" convertible preference shares at $2.00 each. Each share is entitled to cumulative dividend at a fixed rate of 6% annually, or is convertible into 10 common shares at any time. Lowen & Partners Corporate Services acted as agent.
Pethealth has already used $1 million of the proceeds towards loan agreements made in November, which provide for a maximum loan of $4 million. The company plans to use the balance to establish a reinsurance operation to facilitate full rollout of its pet micro-chipping and pet recovery program, as well as for general working capital.
"This financing will allow us to move forward with the next stage of our business plan," says Pethealth CFO Glen Tennison. "Additionally, we are delighted that several new institutional investors have participated in this financing, thus providing us with a more diverse institutional shareholder base."