mCloud Technologies Corp., a leading provider of asset management solutions combining IoT, cloud computing, artificial intelligence (“AI”) and analytics, announces today that it has entered into an agreement with Raymond James Ltd., Eight Capital, Gravitas Securities Inc. and Paradigm Capital Inc. (collectively, the “Underwriters”) pursuant to which the Underwriters have agreed to purchase, on an underwritten basis, 2,739,727 units of the Company (the “Units”), at a price of $3.65 per Unit (the “Offering Price”), for aggregate gross proceeds to the Company of $10,000,003 (the “Offering”).
Each Unit will be comprised of one common share of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will be exercisable to acquire one common share (a “Warrant Share”) for a period of two years following the closing of the Offering at an exercise price of $4.75 per Warrant Share, subject to adjustment in certain events.
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In addition, the Company has granted the Underwriters a 30-day option (the “Over-Allotment Option”) to purchase up to 410,959 additional Units on the same terms as the Offering. If the Over-Allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be $11,500,003. The over-allotment option may be exercised by the Underwriters to acquire Units, Common Shares and/or Warrants.
The Company has applied to list the Common Shares, Warrants and Warrant Shares issuable pursuant to the Offering on the TSX Venture Exchange (the “TSXV”). Listing will be subject to the Company fulfilling all of the requirements of the TSXV.
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The Company intends to use the net proceeds of the Offering, in part, to satisfy payment of the cash consideration payable on closing pursuant to the proposed acquisition of kanepi Group Pty Ltd announced on June 25, 2020, with the remaining net proceeds to be used for working capital and general corporate purposes. Closing of the Offering is expected to occur on or about July 6, 2020 and will be subject to a number of customary conditions including receipt of all necessary regulatory and stock exchange approvals, including approval of the TSXV.
A prospectus supplement to the Company’s short form base shelf prospectus dated April 28, 2020 for Nunavut and its amended and restated short form base shelf prospectus dated April 28, 2020 (together, the “Prospectus”) will be filed with the securities regulatory authorities in each of the provinces of Canada and Nunavut. The Prospectus contains important detailed information about the Offering.
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