Yesterday afternoon, PowerBand Solutions (TSXV: PBX) announced that it will be conducting a financing. The company has entered into an arrangement with Desjardins Capital Markets and Scotiabank, whereby the agents have agreed to sell on a best efforts basis 17.6 million shares of the company to raise gross proceeds of $12.0 million.
Under the terms of the financing, shares are to be priced at $0.68 per each. Notably, no warrant is included within the financing, with securities sold still subject to the standard four month hold upon closing of the financing.
An over-allotment option has also been granted, which if exercised, would increase the total financing to $13.8 million.
Sponsored · Mercado Minerals
Proceeds from the offering are to be used to fortify the firms balance sheet, accelerate growth, and for the launch of DrivrzXchange and DrivrzLane before the end of the year.
“This transaction serves to de-risk our business plan and enables us to attract new capital markets partners and sophisticated investors as we continue to accelerate growth and scale our business. This is a very strategic financing as it positions all three business segments to contribute to financial results in 2022.”
Kelly Jennings, CEO of PowerBand Solutions
PowerBand Solutions last traded at $0.75 on the TSX Venture.
FULL DISCLOSURE: PowerBand Solutions is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover PowerBand Solutions on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
