Forward Water Technologies Inc (FWT) a Canadian wastewater treatment company preparing to go public through a combination with Hope Well Capital Corp (CVE:HOPE), has completed the first tranche of its brokered private placement of subscription receipts for gross proceeds of more than $5.1 million.
The subscription receipts were offered at a price of $1 each, and FWT anticipates completing a second tranche for additional gross proceeds of $1 million within the next two weeks.
Each subscription receipt will get converted into an FWT unit, consisting of one share and half a share purchase warrant. In turn, each FWT unit will be exchanged for five units of the new company resulting from the three-cornered amalgamation with DWT and Hope Well.
READ: Forward Water Technologies strikes definitive agreement with Hope Well Capital to take the wastewater company public on the TSX Venture Exchange
The resulting units will also contain one share and half a share purchase warrant, with whole warrants exercisable at a price of $0.25 for two years.
The gross proceeds, net agent expenses and 50% of the agents’ commissions are being held in escrow, the company said. On closing of the proposed transaction, FWT will pay a finder’s fee of 220,640 FWT shares and $220,640 cash.
FWT, based in Toronto, is commercializing its proprietary forward osmosis technology that allows manufacturing operations to clean their wastewater and reclaim up to 90% of the waste as clean water.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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