ERIN POOLEY

Globe and Mail Update

Tuesday, June 29 – Online Edition, Posted at 8:01 AM EST

Electronic payment service Dexit Inc. has filed a final prospectus with Canadian regulators for an initial public offering worth up to $25-million.

In a news release yesterday, the Toronto-based company said it expects to issue 4,166,667 common shares at $6 apiece and may issue up to an additional 625,000 shares for further gross proceeds of $3.75-million if underwriters exercise their overallotment option.

"We truly believe that cash is obsolete. In a society where everything is electronic we wanted to have the money to deliver on our strategy," Dexit's president and chief executive officer Renah Persofsky said yesterday.

She said the company will use the money raised to "go to the next step of making Dexit international," and to expand into "major urban centres" across Canada.

"I'm not sure the U.S. is the next market but we will be taking Dexit outside of Canada to major centres," Ms. Persofsky said.

The Dexit service enables consumers to pay for purchases typically under $25 using a key-sized electronic tag that is linked to a prepaid account.

The company lost $7.1-million last year as it pioneered the system with fast-food outlets, drugstores and convenience stores in downtown Toronto, including Krispy Kreme doughnuts and Druxy's delis. Bell Canada this year signed a marketing deal with Dexit.

First Associates Investments Inc. is leading the IPO with co-manager Dundee Securities Corp. and a syndicate comprising Paradigm Capital Inc., Haywood Securities Inc. and McFarlane Gordon Inc.

Following the expected completion of today's IPO, Dexit shares have been approved for listing on the Toronto Stock Exchange, the release said.