Vendasta pulls IPO, raises $120-million from private backers instead

Saskatoon-based Vendasta Technologies Inc. has formally pulled plans to go public on the Toronto Stock Exchange and has instead raised $119.5-million in a private financing led by New York’s Lugard Road Capital.

Vendasta, which sells digital tools to companies that serve small businesses, filed to go public 10 weeks ago, laying out plans to raise $100-million at between $14 to $16 a share. However, Vendasta had difficulty filling out its order book from institutional investors amid a market swoon that cut valuations of tech stocks. That prompted several other companies that went public this spring to slash their deal sizes and offering prices to complete their deals.

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