Breaking Data Corp. Announces $4,000,500 Bought Deal Financing

Breaking Data Corp. (TSXV:BKD) announced that it has entered into an agreement with Clarus Securities Inc. as lead underwriter on behalf of a syndicate of underwriters to purchase, on a bought deal private placement basis, 22,225,000 units of the Company at a price of $0.18 per Unit, for aggregate gross proceeds of $4,000,500.
As quoted in the press release:

Each Unit is comprised of one common share in the capital of the Company (“Common Share“) and one Common Share purchase warrant, (“Warrant“). Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.24 for a period of 24 months following closing of the Offering.
The Company has also granted to the Underwriters an option, exercisable in whole or in part prior to closing of the Offering, to purchase that number of additional Units that is equal to 15% of the Offering, at the Issue Price, which would result in additional gross proceeds to the Company of up to $600,075 (the “Option“).
The Company plans to use the net proceeds of the Offering for working capital requirements and general corporate purposes.
In connection with the services to be performed by the Underwriters, the Company will pay a cash commission equal to 7.0% of the gross proceeds of the Offering and from the exercise of the Option and that number of broker warrants (the “Broker Warrants“) as is equal to 7.0% of the number of Units issued pursuant to the Offering and upon exercise of the Option. Each Broker Warrant shall be exercisable into one Unit at the Issue Price for a period of 24 months following closing of the Offering.
The Offering is scheduled to close on or about October 27, 2016, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange (“TSXV“). The securities to be issued under this Offering will be offered by way of private placement exemptions in all the provinces of Canada, and in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.