Company sells 20 million units of one share and one two-year warrant
By Devika Patel
Knoxville, Tenn., Feb. 10 – EXO U Inc. said it negotiated a C$2 million non-brokered private placement of units.
The company will sell 20 million units of one common share and one warrant at C$0.10 per unit.
Each two-year warrant will be exercisable at C$0.15. The strike price reflects a 15.39% premium to the Feb. 9 closing share price of C$0.13.
Hypertechnologie Ciara Inc. is expected to invest up to C$500,000.
Settlement is expected Feb. 29.
Proceeds will be used for general corporate and working capital purposes. In particular, the company intends to use the funds to execute its go to market strategy in which it is focused on building revenues with established distribution and sales channels in K-12 and Higher Education.
“This financing provides us with the resources to deliver against the new go to market strategy implemented in October with our new management team. In that time, we have signed three major distribution partners, launched sales activities in Europe and in the U.S., launched the new Ormi BYOD Platform to positive acclaim, and continued to refine our cost base, operations and product to deliver a great experience for our customers,” chief executive officer Kevin Pawsey said in a press release.
The enterprise software company is based in Montreal.
| Issuer: | EXO U Inc.
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| Issue: | Units of one common share and one warrant
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| Amount: | C$2 million
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| Units: | 20 million
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| Price: | C$0.10
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| Warrants: | One warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$0.15
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| Agent: | Non-brokered
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| Investor: | Hypertechnologie Ciara Inc. (for up to C$500,000)
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| Pricing date: | Feb. 10
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| Settlement date: | Feb. 29
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| Stock symbol: | TSX Venture: EXO
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| Stock price: | C$0.13 at close Feb. 9
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| Market capitalization: | C$5.65 million
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