GTEC Holdings Ltd. (TSXV:GTEC) (OTC:GGTTF) (FRA:1BUP) just announced that it has entered into an engagement letter to raise up to $5,005,000 CAD in a private placement, on a “commercially-reasonable efforts” basis through Sprott Capital Partners LP.
Here’s What Investors Need to Know
- The money raised will bolster GTEC Holdings’ balance sheet, and be used for general corporate and working capital purposes.
- The offering will consist of up to 9,100,000 units, where each unit shall be comprised of one GTEC Holdings common share and one-half of one common share purchase warrant.
- The issue price has been set at $0.55 CAD per unit.
- Each whole common share purchase warrant is exercisable at a price of $0.90 CAD for a period of 24 months from the date of issuance.
- GTEC will have the option to accelerate the expiry date of the warrants to 30-days from delivery of such notice, in the event that the volume weighted average price of GTEC Holdings shares on the TSX Venture Exchange is equal to or greater than $1.50 CAD for a period of 20 consecutive trading days.
- Sprott Capital Partners LP, as lead agent, has also been granted an over-allotment option to sell up to an additional 1,820,000 units at the issue price, which is exercisable, in whole or in part, at any time up to 48 hours prior to the last closing of the offering.
- Sprott Capital Partners LP will be paid a cash commission equal to 6% of the gross proceeds of the offering and will also receive broker warrants in a number equal to 6% of the number of units sold under the offering. Each “Broker Warrant” shall be exercisable to acquire one unit at the issue price for a period of two years from the closing date of the offering.
Conclusion
The offering is expected to close on or about February 28th, 2019 and is subject to receipt of all necessary regulatory approvals, including the approval of the TSXV. In the meantime, be sure to subscribe to updates here so you never miss an important development.
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