PyroGenesis Canada Inc (CVE:PYR) (OTCQB:PYRNF) (FRA:8PY) said on Friday that it has entered into a revised agreement with Mackie Research Capital Corporation as the sole bookrunner to increase the size of the previously announced bought-deal financing plan to raise $12 million.
The net proceeds will be used for working capital and general corporate purposes, the company said in a statement.
According to the revised prospectus, the company is offering 2,917,000 units at a price of $3.60 per unit to raise gross proceeds of $10,501,200. The full exercise of the over-allotment option of 437,550 units will yield additional gross proceeds of $1,575,180.
PyroGenesis said the aggregate gross proceeds from the sale of units, including the full exercise of the over-allotment option, will result in $12,076,380.
Each unit will comprise one common share and one-half of one purchase warrant, with each warrant allowing the holder to purchase one additional share at $4.50 apiece at any time up to 24 months from closing.
Also, the company said that if at any time prior to the expiry date of the warrants, the volume-weighted average trading price of the shares on the TSX Venture Exchange or other principal exchange on which the shares are listed is greater than $6.75 for 20 consecutive trading days, the company may deliver a notice to warrant holders accelerating the expiry date, that is 30 days following the date of such notice. Any unexercised warrants shall automatically expire at the end of the accelerated exercise period.
The closing of the offering is expected to occur on or about October 30 and is subject to the company receiving all necessary regulatory approvals, including the approval of the exchange.
PyroGenesis Canada increased the bought-deal financing plan to raise $12 million on Friday instead of the earlier announced $5.76 million.
The high-tech company is a global leader in the design, development, manufacture and commercialization of advanced plasma processes and products.
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— Updates with revised agreement —