Looking Glass Labs (LGL) has announced a non-brokered private placement offering of up to 11 million units at $0.10 each for gross proceeds of up to $1.1 million. Each unit will consist of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one additional share for $0.10 for 2 years from the closing date of the offering.
The company said in a statement that the gross proceeds from the offering will be used for general corporate and working capital purposes.
It also advised that its board of directors has approved the settlement of $1,008,000 in debt through the issuance of 10,080,000 units to arm’s length creditors for outstanding promissory notes. The units will be issued on the same terms and conditions as the offering. It agreed to settle the debt with units to preserve its cash for working capital.
The private placement offering and debt settlement are designed to improve the company’s financial position in the near term, and its independent directors determined that the terms of are reasonable under its current circumstances, LGL said, adding that no related parties will be participating in the offering.
LGL said the offering and debt settlement are expected to close concurrently on or about November 17, 2023, and remain subject to receipt of all applicable regulatory approvals.
"The company is currently seeking and will need to secure additional sources of working capital to continue operations," LGL said in a statement.
"The company’s plan is to actively secure additional sources of funds, including possible equity and debt financing options, while at the same time focus on exercising careful cost control to sustain operations and, if necessary, the company will curtail spending."
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