VHQ Seeks $10 Million in Investment10 Jun, 2002 By: Hive News
VHQ Entertainment Inc. has filed a preliminary prospectus for a proposed financing of up to $10 million, the Canadian chain reported today.
"The proceeds of this offering will allow us to continue our aggressive expansion strategy to bring our full line entertainment stores to underserved communities across Canada," said Trevor Hillman, Chairman and CEO of VHQ Entertainment.
VHQ intends to use the proceeds to open new stores or acquire additional stores, purchase additional inventory for resale, reduce outstanding short-term debt and complete the implementation of a new point-of-sale software system.
VHQ is offering through its agents, Desjardins Securities Inc. and First Associates Investments Inc., a maximum of $10 million worth of units and a minimum of $4 million worth of units of VHQ.
Each unit, when issued, will consist of one common share and 1/2 common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share. The purchase price for each unit and the exercise price of the warrant will be determined through negotiations with the agents prior to the filing of the final prospectus. The preliminary prospectus has been filed with the securities commissions in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Quebec.
VHQ operates 49 wholly owned urban and rural retail stores offering movies, music and games.