Victoria-based holding company WeCommerce is set to consolidate with its parent company, Tiny Capital.

The acquisitive companies have entered into a definitive amalgamation agreement that will make Tiny a public company on the TSX Venture Exchange (TSXV).

This week, TSXV-listed WeCommerce announced the amalgamation agreement between Tiny and SubCo, a wholly-owned subsidiary of WeCommerce. The deal will create a “well-capitalized technology holding company,” according to WeCommerce.

Created by Tiny in 2019, WeCommerce focuses on acquiring businesses within the Shopify partner ecosystem. Tiny remains WeCommerce’s largest shareholder. In March 2022, WeCommerce acquired e-commerce survey and insights platform provider KnoCommerce. Other companies under WeCommerce’s portfolio include Archetype Themes, Out of the Sandbox, and Yopify, among others.

WeCommerce started trading on the TSXV in December 2020 with a share price of $7 CAD. Since January 2022, when the company’s stock was priced at $12.55 CAD per share, WeCommerce’s share price has declined by over 80 percent. WeCommerce’s stock is trading at $1.96 CAD at press time.

The Investment Industry Regulatory Organization of Canada (IIROC) halted WeCommerce’s issues on Monday morning, citing the reason as “Pending Review of Fundamental Acquisition.” It resumed trading on Tuesday at 3 p.m. EST.

RELATED: Shopify platforms acquirer WeCommerce to purchase KnoCommerce for $2.6 million CAD

Prior to the amalgamation, WeCommerce had already made moves to simplify its organization. Earlier this month, WeCommerce announced that it completed a vertical short form amalgamation with its subsidiaries, Fourtysix and Pixel Union Design, to “simplify the corporate structure of WeCommerce and to reduce administrative costs.”

Since 2007, Tiny claims that it has started, invested in, or acquired over 80 companies. As noted on Tiny’s website, it occasionally makes minority and venture investments, but currently focuses on acquiring majority stakes.

In addition to buying into Shopify-focused companies, Tiny and its management team have made several financial contributions to Canadian journalism. Wilkinson is the co-founder of Overstory Media Group, which is the parent company of Vancouver Tech Journal. Tiny is also an investor in The Logic.

RELATED: Tiny Capital takes majority stake in Victoria-based software startup Button

Additionally, Wilkinson is the director of a separate organization called Tiny Foundation, which provides funding to individuals and groups focusing on social justice, child protection, journalism, and medical research. In 2020, the foundation granted $1 million to Canadaland across three years. Jesse Brown, Canadaland’s founder and publisher, said at that time that, ultimately, Tiny will own about 10 to 16 percent of Canadaland, depending on company performance.

As part of Tiny’s merger with WeCommerce, Tiny will be combined with SubCo to form a new company named “Amalco,” which will be wholly owned by WeCommerce. Tiny will be made up of three core operating segments (Beam, Dribble, WeCommerce), as well as several standalone businesses including Meteor Software and We Work Remotely.

WeCommerce CEO Alex Persson will resign from WeCommerce as part of the deal. Tiny co-founders Andrew Wilkinson and Chris Sparling have been appointed to serve as co-CEOs of WeCommerce in Persson’s stead.

WeCommerce’s current CFO David Charron will remain in his role. Tiny’s current CFO, Ampere Chan, will serve as president of the newly merged company.

Feature image courtesy WeCommerce.

The post Tiny enters deal to go public on TSXV through merger with WeCommerce first appeared on BetaKit.

Leave a Reply