NEXE Innovations Inc (CVE:NEXE) (OTCMKTS:NEXNF) (FRA:NX5) announced that it has closed an oversubscribed bought deal public offering of units generating gross proceeds of C$34.5 million, which the company plans to put toward increasing production capacity of its plant-based compostable technology, among other things.
The previously announced offering issued a total of more than 17.2 million units (each containing a common share and half a share purchase warrant) at a price of C$2 per unit. Whole warrants will be exercisable at a price of C$2.50, the company said.
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“We thank the syndicate of underwriters, new investors and our existing shareholders for their support via this oversubscribed financing,” NEXE CEO Darren Footz said in a statement. “The strong demand for this public offering is a testament to our plant-based compostable technology and our upcoming growth plans. With a strong balance sheet and over $50 million in cash, we plan to be very active in increasing production capacity, developing new products and carrying out strategic acquisitions."
NEXE said it plans to use the net proceeds of the offering to increase production capacity, pursue strategic acquisitions, develop new products, as well as for general corporate purposes. The company has developed a patented, fully compostable, plant-based, single-serve coffee pod as an alternative to petroleum-based ones, of which over 40 billion end up in landfill every year.
The company said it paid the syndicate of underwriters a cash commission of $1.9 million and issued an aggregate of 952,500 underwriter warrants, each exercisable at a price of C$2 for two years.
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