ARHT Announces Overnight Marketed Equity Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, Feb. 09, 2021 (GLOBE NEWSWIRE) -- ARHT Media Inc. (TSX VENTURE: ART) ("ARHT" or the "Company") is pleased to announce that it has filed a preliminary short form prospectus in connection with an overnight marketed offering (the “Offering”) of units (the “Units”) from the treasury of the Company, at a price per Unit to be determined in the context of the market (the “Offering Price”). The Offering will be led by Leede Jones Gable Inc. (the “Agent”).
Each Unit will consist of one common share in the capital of the Company (each a “Common Share”) and an amount of common share purchase warrants (each, a “Warrant”), to be determined in the course of marketing the Offering. Each Warrant will entitle the holder to acquire an additional Common Share at an exercise price to be determined in the context of the market and for a period of time to be determined, to be measured from the date of issuance of such Warrants.
The size and pricing of the Offering will be determined in the context of the market at the time of entering into a definitive agency agreement between the Company and the Agent. The Company will grant the Agent an option (the “Over-Allotment Option”) to purchase up to an additional 15% of the Offering on same terms exercisable at any time up to 30 days following the closing of the Offering, for market stabilization purposes and to cover over-allotments, if any.
Closing of the Offering is expected to occur on or about February 25, 2021 and is subject to certain conditions, including regulatory approval, including that of the TSX Venture Exchange.
The net proceeds of the Offering will be used to: i) increase direct and channel marketing programs; ii) increase inventory levels; iii) increase personnel and sales support programs; iv) develop in-house technical expertise; v) grow sales team and authorized partner program; vi) product and software development; vii) develop patent portfolio; and viii) working capital and general corporate purposes.
The Units to be issued under the Offering will be offered by way of short form prospectus in each of the Provinces of Canada (other than Quebec).
This press release will not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.