ARHT Prices $6 Million Overnight Marketed Equity Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, Feb. 10, 2021 (GLOBE NEWSWIRE) -- ARHT Media Inc. (TSX VENTURE: ART) ("ARHT" or the "Company") is pleased to announce that in connection with its previously announced overnight marketed offering, it has entered into an agency agreement with Leede Jones Gable Inc. (the “Agent”) to sell 25,000,000 units of the Company (the “Units”) at a price of $0.24 per Unit (the “Offering Price”) for aggregate gross proceeds of up to $6,000,000 (the “Offering”).
Each Unit will consist of one common share in the capital of the Company (each a “Common Share”) and one common share purchase warrant (each, a “Warrant”). Each Warrant will entitle the holder to acquire an additional Common Share at an exercise price of $0.33 for a period of 36 months following the closing of the Offering; provided, however, that if volume weight average price of the Company's common shares is greater than $0.70 for a period of 10 consecutive trading days, the Company shall have the right to accelerate the expiry of the Warrants. The Company will endeavour to list the Warrants on the TSX Venture Exchange (the"TSXV").
The Company has granted 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 TSXV.
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.