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Q4 amends proposed $150M IPO to be priced $14.0-$17.5 per share

By 11 October 2021News

Private Capital Journal

CPE News (10/7/2021) – Q4 Inc. has filed an amendment to its preliminary base PREP prospectus in connection with its proposed initial public offering (IPO) of its common shares and secondary offering if the over-allotment option is exercised.

Q4 is now anticipating to issue between 8,571,428 and 10,714,285 common shares (9,857,142 and 12,321,427 common shares, including approximately 287,428 to 359,285 common shares on a secondary basis, if the over-allotment option is exercised in full), at between $14.00-$17.50 per common share for gross proceeds of $150 million.

Q4 had previously anticipated to issue between common shares to be priced between $10.50 and $13.00 for gross proceeds of $150 million.

Darrell Heaps, founder & CEO of Q4, is selling 287,428 to 359,285 common shares for gross proceeds of $5.03 million and Q4 will sell the remaining shares pursuant to the full exercise of the over-allotment option.

Prior to closing of offering, Q4 will have approximately 31,064,994 common shares outstanding.

Following the closing of the offering, Q4 will have between 40,922,136 to 43,386,421 common shares outstanding, valuing the company at between $607 to $716 million, assuming no exercise of over-allotment option.

Q4 is backed by Ten Coves Capital (formerly Park Financial Partners), First Ascent Ventures (formerly OpenText Enterprise Apps Fund (OTEAF)), Information Venture Partners, Plaza Ventures, Accomplice, CIC Capital Ventures (formerly Emerillon Capital), HarbourVest Partners, Kensington Capital Partners, and Espresso Capital.

Following the closing of the offering, Ten Coves Capital, currently holding 14,417,527 common shares, will remain as the principal shareholder. Heaps currently holds 2,909,593 common shares.

Toronto based Q4 is a leading capital markets communications platform for publicly traded companies, investors and investment banks.

With offices in New York and London and Toronto, Q4 had 394 employees as of December 31, 2020 (Q4 did not provide update for the employee figure as of June 30, 2021).

For the year ended December 31, 2020, Q4 reported $40.4 million in revenues, $21.7 million in gross profit, $12.2 million in loss from operations, and $13.1 million in net loss. For the six months ended June 20, 2021, Q4 reported $28.6 million in revenues, $16.0 million in gross profit, $10.6 million in loss from operations, and $14.6 million in net loss.

photo credit: Q4