Catch the Wind says it has completed a private placement of 2.576 million units, each at a price of C$2.00, generating gross proceeds of C$5.152 million.
Each unit comprises one common share of the company and one common share purchase warrant. Each whole warrant entitles the holder to purchase, subject to adjustment in accordance with its terms, one half of one common share of the company at an exercise price of C$2.20 per whole share at any time within 24 months from the closing of the offering.
National Bank Financial Inc., Dundee Securities Corp. and Mackie Research Capital Corp. served as agents for the private placement and received a commission of 6% of the gross proceeds raised under the offering. As part of the offering, the agents collectively subscribed for an aggregate of 150,000 units of the company based on a price per unit of C$2.00, with such units having the same terms and conditions as those issued to purchasers under the offering.
Pursuant to applicable Canadian securities laws, the common shares and warrants issued under the offering and the common shares issuable on exercise of the warrants – including those issued to the agents – will be subject to a four-month hold period from the closing of the offering. The net proceeds of the offering will be used for further development, production and sales of the company's product lines and for general corporate purposes.
Various Hunter Hall entities, which collectively have beneficial ownership of, or control or direction over common shares of the company carrying more than 10% of the outstanding common shares of the company, purchased 1.175 million units under the offering. The participation of these entities in the offering constitutes a related party transaction under Canadian Multilateral Instrument 61-101 (MI 61-101), but is otherwise exempt from the formal valuation and minority approval requirements of MI 61-101.
SOURCE: Catch the Wind