EnWave Corp (TSX-V:ENW, OTC:NWVCF) announced that it has entered into an agreement with Clarus Securities to conduct a non-brokered private placement offering of up to 7.5 million common shares at a price of C$0.40 per share, for potential gross proceeds of up to C$3 million.
The proceeds of the offering will be used to manufacture two large-scale Radiant Energy Vacuum (REV) dehydration machines, with capacities ranging from 60kW to 120kW.
EnWave expects the fabrication and assembly process for these machines to take approximately six months.
The company said this investment will improve delivery timelines and support anticipated future demand as its commercial pipeline continues to grow.
The offering is being conducted on a “best efforts” basis under the Listed Issuer Financing Exemption (LIFE), which allows for the sale of securities without a hold period under applicable Canadian securities laws. The offering is conditional upon the company raising a minimum of C$2 million in gross proceeds.
Clarus Securities will act as the lead agent and sole bookrunner for the offering. As compensation for its services, Clarus will receive a cash commission of 5.5% of the gross proceeds raised, along with non-transferable compensation options equal to 5.5% of the number of shares sold. Each option will be exercisable for one common share at the issue price for a period of 24 months following the closing date.
The offering is expected to close on August 21.