Railtown AI Technologies Inc (CSE:RAIL) has announced a non-brokered private placement of up to 10 million units at a price of $0.15 each for aggregate gross proceeds of up to $1.5 million.
The company said it intends to use the proceeds raised to accelerate the commercialization of its software platform and for general corporate and working capital purposes.
Each unit in the offering will consist of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one additional share at an exercise price of $0.25 per share for a period of 36 months from the closing date of the offering, subject to an acceleration clause.
The offering may close in tranches, with the first tranche expected to close on or around June 19, 2023.
In connection with up to $300,000 of the offering, the company said it may pay eligible finders a cash commission equal to 8% of the gross proceeds raised from purchasers introduced by such finders and/or issue to such finders non-transferable common share purchase warrants equal to that same 8%.
Each finder's warrant will entitle the holder to acquire one share at an exercise price of 15 cents per share for a period of 36 months from the date of issuance. In addition, the company may pay a flat referral fee to certain finders.
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