PyroGenesis - CEO, P. Peter Pascali.
CEO, P. Peter Pascali.
Source: PyroGenesis.
  • PyroGenesis Canada (PYR) has closed its bought-deal short form prospectus offering, after raising more than C$12 million in gross proceeds
  • The company issued 3.35 million units at $3.60 each, which included the full exercise of the offering’s over-allotment option
  • PyroGenesis Canada’s units contained one common share and half a common share purchase warrant each
  • Proceeds will fund the company’s expansion, sales and marketing, research and development activities, purchases, and general working capital
  • PyroGenesis Canada is down 1.46 per cent and is currently trading for $4.05 per share

PyroGenesis Canada (PYR) has closed its bought-deal short form prospectus offering, after raising more than C$12 million in gross proceeds.

Through the offering, the technology company issued 3.34 million of its units, at a price of $3.60 each. This issuance amount included the full exercise of the offering’s over-allotment option. 

Each unit contained one common share in PyroGenesis Canada, and one half of a common share purchase warrant. One whole warrant allows the holder to purchase one extra common share in the company at an exercise price of $4.50, within 24 months of the offering’s closing.

However, the warrants issued through PyroGenesis’ offering is subject to potential acceleration of the expiry date within those 24 months. If the company’s common shares on the TSXV reach a volume weighted average trading price higher than $6.75 for 20 consecutive trading days, PyroGenesis may accelerate the expiry date.

The sole underwriter and bookrunner of the company’s offering was Mackie Research Corporation. In consideration for its services, PyroGenesis paid a cash commission equal to 6.5 per cent of the offering’s gross proceeds to the underwriter.

The company also issued 191,414 non-transferable compensation options to the underwriter. These options are exercisable into units at a price of $3.60 per unit, within 24 months of the offering’s closing.

Proceeds from the offering will be used by PyroGenesis for a variety of purposes relating to the company’s expansion plans. Approximately $5 million of the proceeds will expand the company through future acquisitions of or investments in complementary businesses, products, or technologies.

Roughly $1.5 million will go towards developing the company’s sales and marketing, while $1 million will fund research and development activities. The R&D activities will focus in particular on PyroGenesis’ offerings in the greenhouse gas emissions reduction sector.

Another $1 million will be used to purchase equipment, tools, and software for the business, with the balance of proceeds going towards general working capital.

PyroGenesis Canada is down 1.46 per cent and is trading for $4.05 per share, as of 12:03pm EST.

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