TraceSafe Inc. (CSE:TSF) announced that it completed a US$3.2 million face value convertible note financing with institutional investor Arena Investors LP, raising gross proceeds of US$3.0 million.
The company said the financing will help drive its growth agenda, including a significant focus towards solutions in sustainable operations.
“This financing will propel us into the next phase of our growth that starts with expanding our reach into the US capital markets and client pool,” TraceSafe CEO Wayne Lloyd said in a statement.
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“With our proven ability to evolve quickly and solve problems effectively, we are well-placed to become a one-stop solution for the organizations that are ready to transform for a sustainable future,” Lloyd added.
TraceSafe noted the transaction, structured by New York-based investment bank EF Hutton, will help the company pave the way for executing on larger value creating products and milestones for customers and shareholders in the upcoming months.
The convertible note bears interest at a rate of 12% per annum, payable quarterly, and may be converted into TraceSafe common shares in whole, or part, at any time upon delivery of a conversion notice by Arena Investors to TraceSafe.
The note is convertible, at the option of Arena Investors, at the lower of the following specified discount methodologies:
- 20% discount to a public offering of newly-listed US securities for shares registered in said public offering accounting for half of face value of the note and;
- 20% discount to a public offering or 5% discount to the five-day, volume-weighted average price (VWAP) price (subject to the Nasdaq floor requirements and 50% maximum discount to public offering) of newly-listed US securities via public offering immediately before registration of Arena Investors' shares being deemed effective.
TraceSafe is a full suite of real-time location management services and contact tracing solutions enabled through advanced low power bluetooth beacons and enterprise cloud management. Its leading cloud management solution ensures both user privacy and comprehensive administrative control.
The company's patented contact tracing bracelet has already been deployed in mission-critical quarantine applications around the world in partnership with leading governments. In addition to its government work, TraceSafe is developing leading-edge solutions for Enterprise, Healthcare, Education and large-scale venue management.
Contact Sean at sean@proactiveinvestors.com