TORONTO–(BUSINESS WIRE)–POSaBIT Systems Corporation (CSE: PBIT) (“POSaBIT” or the “Company”) announces that it has closed the brokered private placement described in its news releases of June 19, 2019 and July 24, 2019 (the “Offering”). In connection with the closing of the Offering, POSaBIT issued an aggregate of 6,026,597 units (the “Units”) at a price of $0.15 per Unit for gross proceeds of $903,989.55. Each Unit consists of one common share (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share until August 2, 2021 at an exercise price of $0.30 per Common Share.
The securities issued pursuant to the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.
The net proceeds raised under the Offering will be used for expansion and business development activities and general working capital and corporate purposes.
The Company paid a syndicate, led by Canaccord Genuity Corp. (the “Agents”), a cash commission of $31,500 and issued the Agents 209,999 brokers’ warrants, with each brokers’ warrant exercisable to acquire one Common Share of the Company until August 2, 2021 at an exercise price of C$0.15 per share, subject to adjustment in certain events. The Company also paid the lead Agent a corporate finance fee of $75,000 in connection with the Offering by the issuance of 500,000 common shares (at a deemed issue price of C$0.15 per share).
This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The securities will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements.
This press release contains forward-looking statements, including statements regarding our business strategy, product development, timing of product development, events and courses of action. Statements which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, outlook, expectations or intentions regarding the future including words or phrases such as “anticipate,” “objective,” “may,” “will,” “might,” “should,” “could,” “can,” “intend,” “expect,” “believe,” “estimate,” “predict,” “potential,” “plan,” “is designed to” or similar expressions suggesting future outcomes or the negative thereof or similar variations. Forward-looking statements may include, among other things, statements about: our expectations regarding our expenses, sales and operations; our future customer concentration; our anticipated cash needs and our estimates regarding our capital requirements and our need for additional financing; our ability to anticipate the future needs of our customers; our plans for future products and enhancements of existing products; our future growth strategy and growth rate; our future intellectual property; and our anticipated trends and challenges in the markets in which we operate. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which POSaBIT will operate in the future, including the demand for our products, anticipated costs and…