- Loyalty and reward programs company Ackroo (AKR) has announced plans to conduct a non-brokered private placement
- The company will issue up to 25 million units at C$0.12 each for total proceeds of up to $3 million
- Shen Capital Partners will be the lead investor in the private placement, with a minimum investment of $2 million
- The company will use the proceeds to pursue future strategic acquisitions and organic growth opportunities
- Ackroo (AKR) is up 8.7 per cent and is currently trading at $0.12 per share
Loyalty and reward programs company Ackroo (AKR) has announced plans to conduct a non-brokered private placement.
The company plans to issue up to 25 million of its units at C$0.12 each, for total proceeds of up to $3 million. Each unit in Ackroo will contain one common share in the company and one common share purchase warrant.
One whole warrant will allow the holder to buy one more common share in Ackroo at an exercise price of $0.18. This can be done within 36 months of the warrant’s date of issuance.
However, the warrants from this private placement are subject to accelerated expiry, if certain conditions are met. In this case, acceleration would occur if the closing price of Ackroo’s shares on the TSX Venture Exchange (TSXV) reaches $0.28 or more for 20 consecutive trading days after 18 months from the issue date.
The lead investor for the $3 million private placement will be Shen Capital Partners, or an affiliated entity. Shen Capital intends to invest a minimum of $2 million under the private placement.
In connection with Shen Capital’s subscription, Ackroo has agreed to grant Shen Capital the right to nominate one member and one board observer to the company’s Board of Directors. Initially, the nominated board member will be Francis Shen, while the board observer will be Andrew Shen.
Once the private placement is completed, Ackroo plans to use the proceeds to pursue future strategic acquisitions. The money will also help to provide organic growth opportunities for the company.
Ackroo (AKR) is up 8.7 per cent and is trading at $0.12 per share at 12:05pm EDT.