Mobi724 Global Solutions (CSE:MOS) has entered into an agreement with GMP Securities for a bought deal private placement for aggregate proceeds of approximately $5 million.
As quoted in the press release:
Each Special Warrant will entitle the holder thereof to receive and without payment of additional consideration, one (1) unit of the Company (each a “Unit” and collectively the “Units“) consisting of one (1) Common Share (each a “Unit Share“) and one-half of one (0.5) common share purchase warrant (each whole common share purchase warrant a “Warrant“). Each whole Warrant, subject to customary adjustments, shall be exercisable into one (1) Common Share (a “Warrant Share“) at an exercise price of $0.46 per Warrant Share for a period of two (2) years from the date of issue. If the volume weighted average price of the Common Shares on the CSE is equal to or greater than $0.65 for a period of 10 consecutive trading days then the Company may anytime thereafter accelerate the expiry date of the Warrants to the date that is 30 days following the date on which the Company issues notice to all the Warrant holders of the new expiry date. The Company will also issue a press release on the same date as it issues notice confirming the new expiry date of the Warrants.
The Company has agreed to use its reasonable commercial best efforts to obtain a receipt for a final short form prospectus qualifying the distribution of the Units upon exercise of the Special Warrants (the “Qualification Condition“) on or before the date that is 90 days following closing of the Offering (the “Qualification Deadline“). If the Prospectus Qualification does not occur before the Qualification Condition, each holder shall be entitled to receive, without payment of additional consideration, 1.05 Units per Special Warrant. Unless the Qualification Condition occurs, securities issued in connection with the Offering will be subject to a four-month hold period from the date of issue.
The closing of the Offering is subject to the completion of formal documentation, including but not limited to, the execution of an underwriting agreement with the Underwriter in connection with the Offering and receipt of any required regulatory approvals, including approval of the CSE. All securities issued pursuant to the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering. Closing of the Offering is expected to occur on or about April 18, 2017 or such other date as the Underwriter and the Company may agree.