NEXE Innovations Inc (CVE:NEXE) (OTCMKTS:NEXNF) (FRA:NX5) announced it will raise gross proceeds of about C$8 million, by issuing four million units of the company at a price of C$2 per unit, in a bought deal financing led by the underwriters Canaccord Genuity Corp.
NEXE said it intends to use the net proceeds of the offering to increase production capacity, for strategic acquisitions and new product developments, as well as for general corporate purposes.
Each unit of the financing will consist of one common share of the company plus one-half of one common share purchase warrant, exercisable to acquire one common share for a period of two years following the closing at an exercise price of C$2.50 per share.
READ: NEXE leads the charge with its fully compostable coffee pods for use in Keurig and Nespresso machines
The offering is expected to close on or about April 9, subject to certain conditions including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
The company also noted that it has granted the underwriters an option to purchase additional units from the company equal to a further 15% of the number of units sold at the offering price, exercisable at any time for a period of 30 days after and including the closing date.
NEXE Innovations is a leader in plant-based compostable technology and advanced materials innovation.
The Vancouver-based company designs and manufactures fully compostable, plant-based materials for everyday consumer products. NEXE has developed one of the only patented, fully compostable, plant-based, single-serve coffee pods for use in coffee machines.
Contact Sean at sean@proactiveinvestors.com