Forward Water Technologies Corp (TSX-V:FWTC) and Fraser Mackenzie Accelerator Corp. have successfully completed their business combination, the companies said Monday.
As part of the transaction, FWTC executed a 10-for-1 consolidation of its common shares prior to the amalgamation with FMAC.
Following the consolidation, FMAC's issued and outstanding common shares were exchanged at an exchange ratio of 0.95 FWTC Shares for each FMAC Share.
In conjunction with the transaction, FMAC raised gross proceeds of approximately $1.7 million by issuing 15,887,850 subscription receipts priced at $0.107 each.
Upon closing, these receipts converted into units consisting of one FMAC Share and half of a common share purchase warrant. Following the exchange ratio adjustment, holders of the warrants will now be able to acquire FWTC Shares at a price of $0.1579 for a term of three years.
Following the completion of the transaction, FWTC has a total of 49,174,592 Shares issued and outstanding, including those from the subscription receipts. The effective issue price of the FWTC Shares is $0.1126. This includes 19,542,448 Shares issued to former FMAC shareholders, 2,744,575 Shares issued due to the conversion of debentures, and 15,093,459 Shares issued to holders of subscription receipts.