- Victory Square Technologies (VST) has increased the size of its private placement of special warrants, due to strong investor demand
- The placement will now offer up to 10.5 million warrants in the company for gross proceeds of up to C$5.5 million
- Proceeds of the offering will primarily go towards funding future acquisitions and organic growth investments
- The company now expects the private placement to close sometime around November 6, 2020
- Victory Square Technologies (VST) is down 3.39 per cent and is currently trading at 57 cents per share
Victory Square Technologies (VST) has increased the size of its private placement of special warrants, due to strong investor demand.
In order to do so, the company has amended its agreement with Gravitas Securities, the lead agent on the private placement.
As a result of the increase, the placement will now offer up to 10,576,924 warrants in the company for sale. At a price of C$0.52 per special warrant, this will result in gross proceeds of up to approximately $5.5 million.
One special warrant will allow the holder to received one unit in Victory Square, without payment of additional consideration. Each unit will consist of one common share in the company, and one-half of a non-transferable common share purchase warrant.
One whole purchase warrant will allow the holder to buy an additional common share in Victory Square. They may do so for $0.78 per share, within 36 months of the placement’s initial closing date.
Victory Square has also amended the option granted to the syndicate of agents, which allows for the sale of up to 1,923,077 additional special warrants. The agents can exercise this option, in whole or in part, at any time in the 30 days following the private placement’s closing date.
If exercised in full, and at the offering price, this option could result in up to $1 million in additional proceeds for the company.
The proceeds of the offering will primarily go towards funding Victory Square’s future acquisitions and organic growth investments. Some money will also go towards working capital and general corporate purposes.
The company now expects the initial closing date of the private placement to be sometime around November 6, 2020.
Victory Square Technologies (VST) is down 3.39 per cent and is trading at 57 cents per share at 2:10pm EDT.