It's to our understanding, the Private Placement is fully subscribed and the Company has saved Smallcap Discoveries subscribers an allocation.
While the Company is only part of our Select Watchlist, Paul Andreola will still be participating in this offering.
The $6.5M will be used for the purchase up to four acres of commercial property in the State of Washington. The Company will start the development of its U.S.-based state of the art operational facility after finalizing a feasibility study, architectural, and technical review of the property. The property is located near the Company's Aldergrove Headquarters with easy access to port, rail and truck shipping and receiving facilities. Operations at the facility will include Buy America assembly, pre-delivery inspections, research and development, as well as general technical work and servicing. Proceeds from the Placement will be used for purchase of the Company's U.S. operations facility, new product development and certifications, product demonstration models or inventory and working capital.
The private placement is for 6,500,000 units at a price of $1.00 per unit (each a "Unit"). Each Unit will be comprised of one common share of the Company and one-half of one share purchase warrant. Each whole warrant (a "Warrant") will allow the holder to acquire an additional common share of the Company at a price of $1.50 per share for a period of two years from the date of closing of the Placement.
In circumstances where, any time after the expiry of the four-month restricted period, the Company's stock trades at $1.75 or greater for 20 consecutive trading days, the Company may give notice accelerating the expiry date of the exercise period of the warrants to that date which is 30 days from the date of such notice.
