mCloud Technologies Corp (CVE:MCLD) (OTCQB:MCLDF) announced on Friday a fully subscribed C$10 million offering, which will partly be used to pay the cash component of the proposed acquisition of kanepi Group Pty announced on June 25.
The funds will also be used for working capital and general corporate purposes, the artificial intelligence (AI) and (IoT) focused-group said in a statement.
Underwriters Raymond James, Eight Capital, Gravitas Securities and Paradigm Capital have agreed to purchase, on an underwritten basis, over 2.73 million units at C$3.65 a throw for gross proceeds of C$10,000,003.
Each unit consists of a share and a warrant, with each warrant exercisable to acquire one share for two years following closing at C$4.75 per warrant Share, subject to adjustment in certain events.
mCloud has also granted the underwriters a 30-day option to buy up to 410,959 additional units on the same terms as the offering.
If the over-allotment option is exercised in full, the aggregate gross proceeds will be C$11,500,003. The over-allotment option may be exercised by the underwriters to acquire units, common shares and/or warrants.
The offering is expected to close on or around July 6 and will be subject to a number of customary conditions including receipt of all necessary regulatory and stock exchange approvals, including approval of the Toronto venture exchange.
On June 25, mCloud revealed it had agreed, through a subsidiary, to a A$12 million (C$11.3 million, US$8.3 million) cash and stock deal to acquire the Australia-based visualization and analytics software company kanepi Group.
The acquisition is expected to bolster mCloud’s presence in a variety of process industries, such as upstream and midstream oil and gas, offshore floating production storage and offloading, liquefied natural gas and mining facilities.
kanepi operates a development centre in Singapore, and its footprint in the southern hemisphere will supplement mCloud’s existing customer base and enhance its AssetCare cloud platform, the company said.
The A$12 million deal consists of A$5 million in cash and stock worth A$7 million. The number of shares will be determined by mCloud’s volume-weighted average trading price for the 15 trading days following the transaction’s closing.
On June 24, mCloud also told investors it was teaming up with tech group nybl in a bid to help oil and gas producers worldwide optimize their well output.
mCloud and nybl have partnered to deliver complete asset optimization solutions to oil and gas operators worldwide, initially targeting over one million oil and gas wells employing artificial lift technology such as Electric Submersible Pumps, or ESPs, and plunger lifts in Western Canada, the US, and the Middle East, said mCloud.
The two companies are already working on a joint solution, combining nybl's lift.ai platform with mCloud's AssetCare, to connect and optimize an initial 2,000 oil wells in North America and Kuwait.
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