BBTV Holdings, the holding company behind Vancouver-based media and tech company BroadbandTV, has entered into convertible debenture and refinancing deals collectively valued at $65 million.
The deals consist of a private placement and convertible debenture sale totalling $35 million, as well as a $29 million debt deferment for a period of five years.
BBTV plans to sell $15 million worth of convertible debentures in a transaction being co-led by Eight Capital and Canaccord Genuity. The company will also hold a private placement of 20,000 convertible debentures. That private placement is being led by an undisclosed Canadian asset manager and gross proceeds from that deal will total $20 million.
Update 16/06/2021: Broadband TV has since closed the convertible debenture and refinancing transactions for a total of $66.27 million. For its part, the convertible debentures brought in gross proceeds of $37.27 million.
Shahrzad Rafati, chair and CEO of BBTV, said this new transaction will allow the company to drive its growth initiatives, including mergers and acquisitions (M&A). BBTV has not disclosed details of its planned M&A transactions.
BroadbandTV has previously acquired YoBoHo in 2015 and has engaged in a number of strategic partnerships with organizations like the NBA, FremantleMedia, and SocialBlade.
Founded in 2005 by Rafati, BroadbandTV allows partners to distribute, manage, and monetize video content through its platform. The company serves both independent content creators and media companies, with the goal of helping them to grow their online presence.
BBTV went public on the Toronto Stock Exchange (TSX) last October through an initial public offering (IPO), raising total gross proceeds of over $172 million CAD, and also buying out German media company RTL Group’s interest in BroadbandTV. The company currently trades on the TSX under the symbol ‘BBTV.’
In its financial results for the first quarter of 2021, BBTV reported $107 million CAD in revenue for 16 percent revenue growth year-over-year compared to Q1 2020. Rafati said at the time that the company remains “bullish” on its growth outlook for this year, attributing this to its creator onboarding efforts.