Kuuhubb (TSXV:KUU) has provided additional details to its private placement originally disclosed on July 10, 2017.
As quoted in the press release:
he proposed offering will consist of an aggregate of up to 16,445,000 subscription receipts (the “Subscription Receipts“) to be issued by the Company at an issue price of C$1.05 per Subscription Receipt for aggregate gross proceeds of up to C$17,267,250 (the “Offering“). The Subscription Receipts will be offered for sale on a best efforts private placement basis by Cormark Securities Inc. (“Cormark“) and Echelon Wealth Partners Inc. (the “Agents“). The Company plans to use the net proceeds of the Offering to fund the proposed acquisition of Sumoing Oy (the “Acquisition“) and for general corporate purposes. Reference is made to the Kuuhubb press release issued on June 23, 2017 for additional information in respect of the proposed Acquisition.
Each Subscription Receipt will entitle the holder thereof to receive one common share of the Company, without payment of additional consideration or further action, upon the satisfaction of the escrow release conditions described below. The Subscription Receipts will be issued pursuant to a subscription receipt agreement (the “Subscription Receipt Agreement“) to be entered into among the Company, Cormark and a subscription receipt agent to be determined. Pursuant to the Subscription Receipt Agreement, the gross proceeds from the Offering, less the Agents’ reasonable out-of-pocket expenses, will be held in escrow and will be released to the Company if, not later than 90 days after the closing of the Offering, (i) all necessary corporate, regulatory, shareholder and other approvals or consents necessary for the completion of the Acquisition and for the issuance of all common shares issuable upon the exercise of the Subscription Receipts have been obtained, and (ii) all of the conditions precedent to the Acquisition shall have been satisfied or waived on terms reasonably acceptable to the Agents. If, prior to such date, these conditions are not met or the Company advises the Agents or announces to the public that it does not intend to proceed with the Acquisition, the subscription receipt agent will release the escrowed funds to the purchasers of Subscription Receipts and no common shares of the Company will be issued.
All securities issued pursuant to the Offering will be subject to a statutory four month hold period from the closing date of the Offering in accordance with Canadian securities legislation.