Predictiv AI Inc (TSX-V:PAI) has outlined the financing details for its upcoming reverse takeover (RTO) involving Shift Technologies and HouseStack Holdings.
The company plans to raise up to $1.5 million through a non-brokered private placement.
The financing will involve subscription receipts priced at $0.10 each. These receipts will convert into common shares and partial warrants upon completion of certain conditions.
The warrants will allow holders to buy additional shares at $0.15, with the potential for accelerated expiry if the share price reaches $0.30 over 10 consecutive trading days.
The proceeds from the financing will be allocated for a $250,000 cash payment to complete the acquisitions, finalize HouseStack’s real estate intelligence platform and CloudREP AI-powered conversational agent, and support the commercial launch of Shift Technologies’ fleet management platform, along with general corporate expenses.
Before the RTO is finalized, Predictiv AI will implement a share consolidation, exchanging 5.5 pre-consolidation shares for one post-consolidation share.
The financing and RTO are expected to close around November 29, 2024, subject to regulatory approval.
Trading in Predictiv AI’s shares has been halted since the announcement of the RTO in August and will resume once the transaction is completed.