- Renewable energy provider UGE International (UGE) is looking to raise C$1 million to fund its future growth plans
- The company intends to issue 555,556 units at a price of $1.80 each, consisting of one common share and one-half of a share purchase warrant
- Each warrant will be exercisable at a price of $2.40 per share for a period of 18 months
- The financing follows follows a strong year for the company, which saw a 35 per cent increase in revenue for the nine months ending September 30
- UGE International is currently up 3.95 per cent to $1.84 per share
Renewable energy provider UGE International (UGE) is looking to raise C$1 million to fund its future growth plans.
Under the terms of the offering, the Toronto-based company intends to issue 555,556 units at a price of $1.80 each. These units will be comprised of one common share in UGE and one-half of a common share purchase warrant.
Each whole warrant will be exercisable at a price of$2.40 per share for a period of 18 months from the date of issuance.
However, in the case that the company’s shares trade at or above a price of $3.00 per share on the TSX Venture Exchange for 10 consecutive trading days, the expiry date of the warrants will automatically be brought forward.
A number of insiders of the company are expected to participate in the offering for a minimum of 100,000 units for a total of $180,000.
UGE says the proceeds will be used primarily for general working capital purposes, building on a year that saw a 35 per cent growth in revenue for the nine months ending September 30.
“2020 has been a remarkable year for UGE, as our team has demonstrated project backlog growth to US$112 million [roughly C$143 million] through September 30 from US$30 million [C$38.4 million] at the beginning of the year,” said Nick Blitterswyk, CEO of UGE International.
“This modest private placement, with meaningful insider participation, reinforces our team’s commitment to our growth strategy and positions the company well as we embark on the next stage of our growth in 2021,” he added.
UGE International is currently up 3.95 per cent to $1.84 per share at 10:43am EST.