AmeriTrust Financial Technologies Inc. (TSXV:AMT / OTCQB:AMTFF) has successfully closed the initial tranche of its brokered offering, securing a substantial $36.19 million in gross proceeds. This financing is strategically designed to reignite the company’s lease origination activities in the first quarter of 2026 and bolster its working capital.
The offering comprised two key components: $20.85 million from the sale of 20,850 Debenture Units and $15.34 million from 306.74 million Life Units. The Debenture Units, priced at $1,000 each, consist of senior unsecured convertible debentures with a five-year maturity, carrying an 8% annual interest rate payable quarterly. Each debenture unit also includes warrants exercisable at $0.12, with a 60-month validity period and an early acceleration clause triggered if the common share volume-weighted average price (VWAP) reaches $0.30 for 30 consecutive trading days after 18 months.
The Life Units were issued at $0.05 per unit, with each unit composed of one common share and one warrant. These warrants are also exercisable at $0.12 for a 60-month term, subject to the same early acceleration provision as those attached to the debentures.
This capital infusion is critical for AmeriTrust, a fintech platform focused on automotive finance. The proceeds are earmarked to restart lease originations, a core business function that has likely been on hold. The company plans to deploy these funds to finance both “flow” and “haircut capital” through a bankruptcy-remote trust, indicating a structured approach to managing financial risk in its lending operations.
The offering was facilitated by Clarus Securities Inc. and Cormark Securities Inc. as co-lead agents. In exchange for their services, the agents received a cash commission of approximately $1.26 million and 14.88 million broker warrants. These broker warrants are exercisable at $0.05 per share until December 23, 2027.
A notable aspect of this financing is the participation of certain company insiders, which qualifies as a related-party transaction under Canadian securities regulations. While the company obtained exemptions from formal valuation and minority shareholder approval requirements for this transaction, additional details regarding these insider participations are expected to be disclosed in a forthcoming material change report.
The second tranche of the offering is anticipated to close around January 6, 2026. The company also maintains an option for the agents to facilitate up to an additional $6 million in proceeds from the offering, with certain limitations on additional Life Unit subscriptions.
Securities issued as Debenture Units and Broker Warrants, along with their underlying shares, are subject to a statutory hold period until April 24, 2026. However, the Life Units are not subject to this hold period, allowing for their earlier trading.
AmeriTrust’s technology platform is designed to streamline transactions between consumers, dealers, and funders in the automotive sector. The successful closure of this financing round positions the company to re-engage in its primary business activities and pursue its growth strategy across the United States. The final acceptance of the offering by the TSX Venture Exchange is still pending.
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