AMPD Ventures Inc. has told investors it has increased the size of its previously announced private placement so that it can increase the funds it allocates to general working capital.
The company now expects to issue and sell up to 16,666,667 units, higher than the previously announced 11,666,667 units, at C$0.30 each for aggregate proceeds of up to C$5 million, up from C$3.5 million previously.
On October 26, AMPD announced it signed a non-binding letter of intent to acquire Departure Lounge Inc, a company pursuing various technology and content initiatives related to the development of the Metaverse.
READ: AMPD Ventures launches private placement for aggregate proceeds of up to C$3.5M; signs LOI regarding potential acquisition of Departure Lounge
“The company intends to use C$2.5M of the proceeds from the private placement to fund the ongoing operations of Departure Lounge post-acquisition,” AMPD said in a statement. “The allocation to AMPD of general working capital will be increased from C$1M to C$2.5M,” it added.
The company said each unit under the increased private placement will still be comprised of one common share of the company and one common share purchase warrant, with each warrant entitling the holder to subscribe for an additional common share at an exercise price of C$0.50 for a period of 24 months following the closing of the private placement.
The expiry date of the warrants may be accelerated at the option of the company if, at any time prior to their expiry, the volume-weighted average trading price of the underlying shares on the Canadian Securities Exchange reaches or exceeds C$0.80 for ten consecutive trading days.
As part of this transaction, the company may enter into finder's fee agreements with certain finders, paying to such finders a fee comprised of either i) a cash commission of up to 7% of the gross proceeds raised by finders, and that number of finder's warrants, with the same terms as the warrants, equal to up to 7% of the number of units sold on the portion of the private placement raised by finders, or ii) issue shares to finders equal to up to 7% of the number of units sold on the portion of the private placement raised by finders.
The private placement is subject to regulatory approval and all securities issued will be subject to a four-month hold period.
AMPD Ventures specializes in providing high-performance and computing solutions for low-latency applications, including video games and eSports, digital animation and visual effects, and big data collection, analysis and visualization.
Contact the author at stephen.gunnion@proactiveinvestors.com