PyroGenesis Canada Inc. (TSX:PYR, NASDAQ:PYR) said it has entered into an agreement with Cormark Securities Inc as lead agent in connection with a reasonable 'best efforts' private placement of a minimum of 5,000,000 units and a maximum of 10,000,000 units from treasury at a price of $1.00 each for gross proceeds of a minimum of $5 million and a maximum of $10 million.
The company said the net proceeds from the issue of the units will be used for working capital and general corporate purposes.
Each unit will consist of one common share of the company and one warrant. Each warrant will entitle the holder to purchase one common share at a price equal to $1.25 for a period of 24 months following the closing date of the offering.
READ: PyroGenesis Canada Inc inks agreement for best efforts' private placement for gross proceeds of a maximum of $10M
The offering is expected to close on or about February 23, 2023, or such other date as the company and the lead agent may agree and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the acceptance of the Toronto Stock Exchange.
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 – Prospectus Exemptions (NI 45-106), the units will be offered for sale to purchasers resident in Canada and/or other qualifying jurisdictions under the listed issuer financing exemption under Part 5A of NI 45-106. Because the offering is being completed under this exemption, the securities issued to Canadian resident subscribers in the offering will not be subject to a hold period under applicable Canadian securities laws.
Concurrently with, and in addition to, the offering, PyroGenesis said it proposes to issue additional units at the issue price to the company's CEO, P. Peter Pascali, having an aggregate subscription price of $2.5 million or such greater amount as may be agreed to by Cormark.
PyroGenesis Canada is a leader in the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG) and are economically attractive alternatives to conventional 'dirty' processes.
The company has created proprietary, patented and advanced plasma technologies that are being vetted and adopted by multiple multibillion-dollar industry leaders in four massive markets: iron ore pelletization, aluminum, waste management, and additive manufacturing.
Contact the author at jon.hopkins@proactiveinvestors.com