Xebec Adsorption arranges $10-million financing
Xebec Adsorption Inc. intends to raise up to $10-million by selling units at 75 cents.
XEBEC ADSORPTION Inc. has filed a preliminary short form prospectus in connection with a best-efforts marketed offering of units of the company for aggregate gross proceeds to the company of up to $10-million. Each unit will consist of one common share of the company at an indicative price of 75 cents per unit and one-half of one common share purchase warrant. Each warrant will entitle the holder thereof to pur chase one c om mon share, at a price of $1.05 per common share, for a period of 18 months from the closing date (hereinafter defined) of the offering. The offering is being led by Beacon Securities Ltd., on behalf of a syndicate of agents to be formed.
The agents have the option to offer for sale up to an additional 15 per cent of the aggregate number of units, common shares, warrants, or any combination thereof sold under and on the same terms as, the offering at any time up to 30 days following the closing date of the offering to cover overallotments, if any, and for market stabilization purposes.
The units will be offered by way of preliminary short form prospectus which has been filed with the securities regulatory authorities in each of the provinces of Canada, pursuant to National Instrument 44-101 — Short Form Prospectus Distributions.
The company intends to use the net proceeds of the offering to finance new project development initiatives in the renewable gas generation sector, potential merger and acquisition opportunities involving potential targets in industrial business segments, research and development, capital equipment, and general corporate purposes. The offering will be priced in the context of the market conditions with the final terms of the offering to be determined at the time of pricing following the marketing initiatives of the company. The offering is scheduled to close on or about Oct. 26, 2018, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange. The company is also pleased to announce that it expects to have a positive cash flow from operating activities as of Sept. 30, 2018. The company will be providing a full update with respect to the third quarter results when it will release its financial results for such quarter in November.
About Xebec Adsorption Inc.
Xebec Adsorption is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Its customers range from small to multinational corporations and governments looking to reduce their carbon footprints.
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William K Beckett, Jean-Francois Bedard, Joseph H Petrowski, Prabhu Rao, Guy Saint-Jacques, Kurt Sorschak
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