- Solar energy provider UGE International (UGE) has increased the size of the private placement which it announced only yesterday
- The company originally planned to raise C$1 million, but now has fully allocated subscriptions for $1.62 million in proceeds
- UGE attributed this upsize of its initially “modest” financing to increased demand
- The company plans to close the offering by no later than December 18, 2020
- UGE International is down 2.25 per cent and is currently trading for $1.74 per share
Solar energy provider UGE International (UGE) has increased the size of the private placement which it announced only yesterday.
The company originally intended to issue 555,556 units at a price of C$1.80 each, for proceeds of $1 million. However, UGE now has fully allocated subscriptions for 900,000 units, which will produce $1.62 million in proceeds.
UGE attributed this upsize of its initially “modest” financing to increased demand. While the size of the non-brokered private placement has changed, much of the original details will stay the same.
Each of the 900,000 units will still cost $1.80 each, and will contain one common share in UGE and half of a common share purchase warrant. Each whole warrant will allow the holder to buy one additional common share in the company, at an exercise price of $2.40 per share.
The warrants from the placement will be exercisable into common shares within 18 months of the date of issuance. However, if the price of UGE’s common shares on the TSX Venture Exchange rise to $3.00 or more for ten consecutive trading days, the warrants’ expiry date will be accelerated.
All securities which are issued through the offering will be subject to a hold period of four months and one day, from the date of issuance.
UGE plans to close the offering by no later than December 18, 2020.
As stated in its announcement yesterday, the company intends to primarily use the proceeds for general working capital purposes.
UGE International is down 2.25 per cent and trading for $1.74 per share, as of 11:06am EST.