The Toronto- and New York-based company said that the proceeds will also go towards developing complementary solutions that it plans to launch in the US next year.
Under the terms of the financing, each unit was made up of one share priced at C$0.33 and one-half of one warrant that is exercisable at C$0.60 for a two-year term.
GlobeX paid corporate advisory fees of just over C$302,000, leaving net proceeds of nearly C$6 million to the company.
The firm added that some funds will be used to increase capacity and infrastructure, as well as general corporate purposes.
"We are quite pleased and satisfied and appreciative with the demand we have received from our investors for this private placement,” GlobeX CEO Alain Ghiai said in a statement. “This additional placement gives the company even more capabilities as we continue to deploy our solutions to the US mass consumer market and business sectors in the coming 24 months.”
The CEO and CFO participated in the offering, subscribing for 12% or nearly 2.3 million units.
Ghiai told investors that the company plans to increase its US marketing budget to US$750,000 for the remainder of 2021, and increase the marketing budget to US$2 million for 2022, depending on the results of media and marketing efforts.
“With C$9.4 million (US$7,460,000) in the bank as of the close of this funding, and no convertible or long-term debt, the company has now a solid balance sheet and all the cash to execute its plan for 2021 and continue its 2022 marketing plan, and looks forward to bring true Swiss privacy and security to US consumers and businesses,” the CEO added.
GlobeX is a cybersecurity and Internet privacy provider of Swiss hosted solutions for secure communications and secure data management.
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