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Kraken Robotics (TSXV:PNG) completes bought deal offering

Technology
TSXV:PNG
26 October 2020 11:12 (EDT)
Kraken Robotics - President and CEO, Karl Kenny

Source: Marine Technology News

Marine technology company Kraken Robotics (PNG) has closed its bought deal short prospectus offering of common shares.

The offering was completed by a syndicate of underwriters, which was led by Canaccord Genuity Corporation. Other members of the underwriter syndicate included Stifel GMP and Beacon Securities. 

Through the offering, the company sold a total of 15.5 million common shares, at a price of C$0.67 per share. This included the partial exercise of an over-allotment option, which Kraken Robotics granted to the offering’s underwriters.

Since the underwriters only took partial advantage of the over-allotment option, approximately 1.75 million common shares in the company are still available. These remaining shares can be exercised in whole or in part, at any time within the next 30 days.

For now, the company’s bought deal financing has produced $10,385,000 in gross total proceeds. 

However, there is the possibility that the offering’s underwriters will decide to exercise what remains of the over-allotment option within the next 30 days. If exercised in full, at the same price as the offering shares, the remaining over-allotment option could produce as much as $1,172,500 in additional proceeds for the company.

Kraken Robotics will primarily use whatever proceeds are raised to accelerate its Robotics as a Service recurring revenue model. Some funds will also go towards the company’s leasehold improvements, capital expenditures, parts and inventory, future acquisitions, and for general corporate and working capital purposes.

Kraken Robotics (PNG) is up 1.54 per cent and is trading at 66 cents per share at 10:10am EDT.

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