Hapbee Technologies Inc (TSX-V:HAPB, OTCQB:HAPBF) has announced the closing of the second and final tranche of its previously announced upsized non-brokered private placement of units at a price of $0.30 unit, for gross proceeds under the second and final tranche of $1,592,368, resulting in a total of 25,616,857 units issued for total gross proceeds of $7,685,057.
"We are pleased to announce the closing of our upsized financing, which received strong demand from leading North American institutional investors," said Yona Shtern, CEO of Hapbee in a statement. "Now well-financed, we are in a fantastic position as a company to execute our comprehensive growth strategy for 2022. This year's growth plan includes scaling the delivery of our wearable wellness devices to new customers and markets through the expansion of our distribution and marketing channels. I want to thank both our long-time and new stakeholders for their support and belief in the Hapbee platform."
The company said the net proceeds received from the offering will be used for product development, business development, working capital and general corporate purposes.
READ: Hapbee Technologies showcasing latest generation of its smart wearable device and app at CES in Las Vegas
Each unit in the financing consists of one subordinated voting share in the capital of the company and one subordinated voting share purchase warrant, with each warrant entitling the holder to acquire one share for a period of three years from the applicable closing date at an exercise price of $0.50 per share.
The expiry date of the warrants will be subject to prior acceleration following the closing of the offering, at the discretion of the company. As previously announced, if the shares trade at or above $1.00 on the TSX Venture Exchange for a period of 10 consecutive trading days after the expiry of the four-month hold period, the company may issue a news release accelerating the expiry date to 60 days after the filing of such news release.
Closing of the offering is subject to certain customary conditions, including, without limitation, approval of the exchange. The securities to be issued under the offering will be offered by way of private placement under applicable exemptions from the prospectus requirements under applicable securities laws.
Securities issued under the offering will be subject to a hold period which will expire four months and one day from the applicable closing date.
In connection with the closing of the second and final tranche of the offering, the company paid cash finders' fees in the aggregate amount of $33,599.96, issued a total of 70,000 finder's shares and issued a total of 182,000 non-transferrable finder's warrants, resulting in total finder's fees under the offering of $148,652 paid in cash, 275,660 finder's shares issued and 771,166 finder warrants issued. Each finder's warrant entitles the holder to purchase one share at a price of $0.50 per share for a period of one year after the applicable closing date.
Hapbee is a wearable wellness technology company that aims to help people enhance how they feel. Powered by patented ultra-low radio frequency energy (ulRFE) technology the company's product delivers low-power electromagnetic signals designed to produce sensations such as Happy, Alert, Focus, Relax, and others.
The company has offices in Montreal, Vancouver, Seattle and Phoenix.
Contact the author at jon.hopkins@proactiveinvestors.com