Fobi AI Announces Completion of Fully Subscribed Upsized Non-Brokered LIFE Offering and & New Non-Brokered Placement

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VANCOUVER, BC, Feb. 28, 2024 (GLOBE NEWSWIRE) -- Fobi AI Inc. (FOBI:TSXV) (FOBIF:OTCQB) (the "Company" or "Fobi"), an industry leader in harnessing AI and data intelligence to enable digital transformation, is pleased to announce that, further to its press releases dated February 2, 2024, February 23, 2024 and February 26, 2024, it has completed the final closing of its previously announced fully-subscribed upsized non-brokered private placement pursuant to the listed issuer financing exemption (the “Listed Issuer Financing Exemption”) under Part 5A of National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”) (the “LIFE Offering”).

The second tranche of the LIFE Offering closed on February 28, 2024 (“Second Tranche”) and resulted in the issuance of 13,212,128 units of the Company (“Units”) at a price per Unit of C$0.07 for aggregate gross proceeds of $924,849. The total LIFE Offering was comprised of the issuance of an aggregate of 34,905,498 Units at a price per Unit of C$0.07 for aggregate gross proceeds of $2,443,384.94.

Each Unit consists of one (1) common share in the capital of the Company (a “Common Share”) and one (1) common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire one (1) additional Common Share at an exercise price of C$0.14 until the earlier of three (3) years from the date of issuance; and (ii) in the event the volume weighted average price of the Common Shares on the TSX Venture Exchange (the “TSXV”) for any continuous 10 trading day period meets or exceeds $0.21 following the date of issuance thereof (the “Acceleration Condition”), the date that is thirty (30) days following the issuance of a news release by the Company announcing the acceleration of the expiry of the Warrants, which such news release may be issued at any time following the trigger of the Acceleration Condition (the “Acceleration Right”). For avoidance of doubt, the Company shall not be obligated to exercise the Acceleration Right at any time.

Subject to compliance with applicable regulatory requirements and in accordance with NI 45-106, the securities issued under the LIFE Offering are not subject to a hold period pursuant to applicable Canadian securities laws.

In connection with the Second Tranche, the Company paid certain finder’s fees in connection with finder’s fee agreements with Canaccord Genuity Corp, Haywood Securities Inc., PI Financial Corp., and EMD Financial Inc., each an arm’s length finder (the “Finders”). In connection with the closing of the Second Tranche, the Finders were paid an aggregate of $36,019.20 in cash and issued a total of 514,560 non-transferrable finder warrants (each, a “Finder Warrant”) Each Finder Warrant is exercisable to acquire one Common Share at an exercise price of $0.14 until February 28, 2027 or as otherwise accelerated as per the Acceleration Right. The Finder Warrants are subject to a hold period of four months from the date of issuance thereof.