LQwD FinTech Corp announced that it has closed its previously announced offering of 20,000,000 units at a price of C$0.35 per unit for total gross proceeds of C$7 million.
The offering was conducted by a syndicate of underwriters led by Canaccord Genuity (TSX:CF, LSE:CF) Corp. and including PI Financial Corp. The underwriters also exercised their over-allotment option in full to purchase an additional 3,000,000 units for additional gross proceeds of C$1,050,000.
Including the proceeds from the exercise of the over-allotment option, the total gross proceeds of the Offering are C$8,050,000 with an aggregate of 23,000,000 Units issued.
Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each whole warrant is exercisable to acquire one common share until October 28, 2023, at an exercise price of C$0.50.
The company said the net proceeds from the offering will be used to acquire Bitcoin and for general corporate and working capital purposes.
READ: LQwD FinTech upsizes marketed offering to raise C$7M
In consideration for their services, the company paid the underwriters a cash fee equal to 7.0% of the aggregate gross proceeds of the offering, other than in respect of units sold to purchasers designated by the company, for which a cash fee of 3.5% was paid, and issued an aggregate of 1,528,765 compensation warrants and 214,285 common shares as partial payment of a corporate finance fee. Each compensation warrant will be exercisable to acquire one common share at an exercise price equal to the offering price for a period of 24 months from the closing of the offering, subject to adjustment in certain events.
Certain directors and officers of the company participated in the offering by purchasing a total of 413,500 Units. Accordingly, the offering constituted to that extent a "related party transaction" under applicable Canadian securities laws. The company did not file a material change report more than 21 days before the expected closing of the offering as the details of the offering and the participation therein by related parties of the company were not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons.
BIGG Digital makes strategic investment in LQwD
In a separate statement, BIGG Digital Assets Inc, owner of Netcoin, the online cryptocurrency brokerage that makes it easy for Canadians to buy, sell, and understand cryptocurrency, and owner of Blockchain Intelligence Group announced a strategic investment of C$100,000 in LQwD Fintech.
BIGG said it has made very successful recent strategic investments in WonderFi (Wonder.fi) and ZenLedger and is pleased to add LQwD to its minority investment portfolio.
Mark Binns, BIGG CEO commented: “As the crypto market continues to mature and evolve, we believe companies like LQwD will help lead the way in infrastructure and plumbing for crypto payments. Our investment in LQwD shows our support for an established group of entrepreneurs and our continued leadership in the cryptocurrency sector.”
LQwD is a Lightning Network Service Provider (LSP) focused company developing payment infrastructure and solutions. The company's mission is to develop institutional-grade services that support the Lightning Network and drive improved functionality, transaction capability, user adoption and utility and scaling Bitcoin. LQwD also holds Bitcoin as an operating asset establishing nodes and payment channels across the Lightning Network.
- Adds BIGG Digital makes strategic investment in LQwD -
Contact the author at jon.hopkins@proactiveinvestors.com