TraceSafe Inc (CSE:TSF) announced it is raising up to C$10 million to purchase inventory and software of its proprietary location management technology.
The company formerly known as Blockchain Holdings Ltd is offering up to 10 million units priced at $1, with each unit consisting of one share and one-half of one warrant exercisable at $1.50 for a two-year period following the closing date.
The offering is being led by Canaccord Genuity Corp as the agent.
The term sheet stipulates that if the daily volume weighted average price of TraceSafe shares is greater than $2.50 for 10 consecutive trading days, the firm has the right to accelerate the exercise of warrants at the exercise price. If the company exercises this right, the new expiry date will be 30 days following the notice date.
TraceSafe will pay Canaccord a cash commission of up to 6% of the offering’s proceeds and issue the agent warrants to acquire the same number of units equal to 6% of the amount sold under the offering under the same warrant terms. Canaccord will also receive a corporate finance fee in the form of 2% of the aggregate number of units sold in the offering.
Canaccord also has the option to arrange the sale of up to an additional 1.5 million units at the issue price to raise up to $1.5 million, under the same terms as the offering. The agent may exercise the option at any time at least two days prior to the closing date.
The TraceSafe system is a self-quarantine monitoring technology that consists of a bracelet or access card that has an embedded chip that can trace the wearer’s location. The product can track and manage people who are self-isolating in quarantine.
The offering is expected to close by July 16.
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