Xebec Adsorption Inc., - President and CEO, Kurt Sorschak
President and CEO, Kurt Sorschak
Source: The View From The C-Suite
  • Xebec Adsorption (TSXV:XBC) has entered a bought deal public offering agreement to raise up to C$21 million
  • The company plans to issue up to 5.8 million common shares at a price of $3.60 each
  • Desjardins Capital Markets will lead a syndicate of underwriters, which may purchase an additional 15 per cent of the offering to generate a total of $24.1 million
  • The proceeds will be used to develop and invest in new renewable natural gas projects
  • Xebec Adsorption (XBC) is currently down 2.04 per cent and is trading at $3.85 per share at 1:04pm EDT

Xebec Adsorption (TSXV:XBC) has entered a bought deal public offering agreement to raise up to C$21 million.

Based in Montreal, the company provides gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace.

Xebec Adsorption plans to issue a total of up to 5.83 million common shares at a price of $3.60 each to a syndicate of underwriters led by Desjardins Capital Markets.

An option has also been granted to the underwriters to purchase up to a further 15 per cent of the offering at any time up to 30 days following the date of closing. Should this over-allotment option be exercised in full, the offering will generate gross proceeds of $24.1 million.

In a separate transaction expected to close in connection with the offering, Kurt Sorschak, Chairman, President and CEO of Xebec Adsorption, plans to sell two million of his own shares to the underwriters.

Furthermore, Louis Dufour, Chief Financial Officer, and Dr Prabhu Rao, Chief Operating Officer, have also announced their intentions to follow suit, selling 100,000 and 400,000 of their common shares, respectively.

At the offering price of $3.60, these share sales are expected to generate a total of $9 million.

Xebec Adsorption plans to use the proceeds raised under the offering to finance the development and investment in new renewable gas projects. A portion will also be used to pursue strategic growth opportunities and for general working capital purposes.

According to an announcement released earlier this month, the company has launched an investment fund, GNR Québec Capital LP, in partnership with Fonds de solidarité FTQ.

The fund is designed to increase investments within Québec’s renewable natural gas sector, and will include an initial cash injection of $10 million from both parties.

Xebec Adsorption (XBC) is down 2.04 per cent and is trading at $3.85 per share at 1:04pm EDT.

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