(February 18 – 11:35 ET) – Online investment dealer BayStreetDirect Inc. has launched its first online underwriting offering, CARS4U.COM Ltd., an online car retailer.
The preliminary prospectus has just been posted and the electronic order book should be open and accepting conditional offers in three weeks or so.
The deal involves a maximum $15 million common share offering to be sold by Scotia Capital Inc., BayStreetDirect Inc. and others, although only Scotia is listed in the prospectus. The underwriting commission is a fairly average 6.5% despite the online component.
The firm expects to use the net proceeds of the deal to launch its website and for marketing and operations to the tune of $3.5 million, spending $7 million on dealership acquisitions, with the rest going for general corporate purposes. The firm currently owns three auto dealerships – Oakville Honda, Acura Sherway and Trenton Chrysler. It also has a car leasing business, Lease-Win Ltd. and a wholesaling business, Carriage Motor Sales Inc. The CARS4U.com website will be operational in late May 2000 on a test basis, with a full launch in June 2000.
BayStreetDirect is the online broker launched by Jim Beqaj, former president of CIBC Wood Gundy Inc.and vice chair of Nesbitt Burns Ltd., Richard Nesbitt, former CEO of HSBC Securities (Canada)., and Colman O’Brien, former managing director and senior vice president with TD Evergreen.
-IE Staff