NEXE Innovations Inc. (CVE:NEXE) said it has entered into an amended agreement significantly increasing the size of the "bought deal" financing it announced on Tuesday, April 6, 2021, to now raise aggregate gross proceeds of C$30 million, up from about C$8 million initially.
Under the amended terms, a syndicate of underwriters led by Canaccord Genuity have now agreed to purchase an aggregate of 15,000,000 units of the company at a price of C$2.00 each. Previously the offering was for just 4 million units of the company also at a price of C$2 per unit
The company said it intends to use the net proceeds of the offering to increase production capacity, strategic acquisitions, new product developments and for general corporate purposes.
READ: NEXE Innovations to raise C$8M in a bought deal financing
Each unit in the offering will still consist of one common share of the company and one-half of one common share purchase warrant. Each whole warrant will be exercisable to acquire one Nexe common share for a period of two years following the closing of the offering at an exercise price of C$2.50 per warrant share.
Nexe has granted the underwriters an over-allotment option to purchase additional units from the company equal to a further 15% of the number of units sold under the offering at the same price, exercisable at any time, for a period of 30 days after and including the closing date.
The units will be issued under a prospectus supplement that will be filed with the securities regulatory authorities in all provinces of Canada except Quebec under the company's base shelf prospectus dated March 29, 2021.
The offering is expected to close on or about April 9, 2021, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
NEXE Innovations is a leader in plant-based compostable technology and advanced materials manufacturing based in British Columbia, Canada. The company has a patent on a fully compostable, plant-based, single-serve coffee pods for use in leading single-serve coffee machines.
The proprietary NEXE pod is designed to reduce the significant environmental impact caused by single-serve pods, >40 billion of which are discarded every year. With over $35 million raised to date from equity and government funding and over five years of R&D, NEXE is well-positioned to meet the growing demand for environmentally friendly and sustainable products in the single-serve coffee sector and beyond.
Contact the author at jon.hopkins@proactiveinvestors.com