Fobi AI Inc (TSX-V:FOBI, OTCQB:FOBIF) said it has completed a non-brokered private placement offering of 4,723,946 units of the company at a price per unit of 17.5 cents for aggregate gross proceeds of $826,690.55.
Each unit consists of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant entitles the holder to acquire one additional common share in the capital of the company at an exercise price of 30 cents per warrant share at any time until 4.30pm (Vancouver time) on January 24, 2025.
The net proceeds from the offering are expected to be used for general and corporate working capital purposes. All securities issued under the offering will be subject to a statutory hold period ending on May 25, 2023.
In a statement, Fobi chief executive officer Rob Anson commented: "We have put a great deal of focus and effort in executing and achieving our goal of turning cash flow positive in 2023. The business is gaining momentum, and this small strategic raise gives us the ability to complete a couple of key strategic company initiatives. We have strong internal capital support which is a great asset as it enables the company to operate from a position of strength and keep shares in familiar friendly hands."
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CEO Anson and Gavin Lee, the chief operating officer of the company, each respectively participated in the offering by acquiring 571,420 units in the case of Anson and 100,000 units in the case of Lee. As a result of the participation of the insiders in the offering, the offering constitutes a related party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101).
In connection with the offering, a finder's fee of $21,875.01 was paid and 125,000 finder's warrants were issued to an arm's-length party. The finder's warrants have the same terms as the warrants.
Founded in 2017 in Vancouver, Canada, Fobi is a leading AI (artificial intelligence) and data intelligence company that provides businesses with real-time applications to digitally transform and future-proof their organizations.
The company enables businesses to action, leverage and monetize their customer data by powering personalized and data-driven customer experiences, and drive digital sustainability by eliminating the need for paper and reducing unnecessary plastic waste at scale.
Fobi works with some of the largest global organizations across retail and CPG (consumer packaged goods), insurance, sports and entertainment, casino gaming, and more. Fobi is a recognized technology and data intelligence leader across North America and Europe, and is the largest data aggregator in Canada's hospitality and tourism industry.
Contact the author at jon.hopkins@proactiveinvestors.com