MONTREAL, Aug. 2, 2018 /CNW Telbec/ - VOTI Inc. ("VOTI") is pleased to announce the closing of the previously announced brokered private placement of subscription receipts for gross proceeds of approximately $9.2 million, led by GMP Securities L.P. ("GMP") and including Canaccord Genuity Corp., Desjardins Securities Inc., Echelon Wealth Partners Inc. and Industrial Alliance Securities Inc. (collectively, the "Agents"), and the concurrent private placement of convertible debentures of VOTI for gross proceeds of approximately $2.6 million, for aggregate gross proceeds of an aggregate of $11.8 million.
Pursuant to the terms of an agency agreement dated August 2, 2018 among VOTI and the Agents, VOTI completed a private placement of 3,080,991 subscription receipts at a price of $3.00 per subscription receipt, for aggregate gross proceeds of approximately $9.2 million. The gross proceeds of the offering, less certain expenses of the agents, will be held in escrow on behalf of the subscribers by an escrow agent.
In connection with the previously-announced going public transaction by way of a reverse takeover involving Steamsand Capital Corp (the "RTO"), each subscription receipt will be automatically exchanged, without additional payment or any further action on the part of the holder thereof, into one post-RTO common share and one post-RTO half of a common share purchase warrant of VOTI, each whole warrant entitling the holder thereof to acquire one additional post-RTO common share of VOTI at a price of $4.50 for a period of 36 months following completion of the RTO, immediately prior to such completion and upon the satisfaction of specified escrow release conditions in accordance with the terms of a subscription receipt agreement entered into among VOTI, GMP and an escrow agent. The escrowed proceeds will be released to the resulting company on completion of the RTO.
The convertible debentures are convertible into units of VOTI at a price of $3.00 per unit, each such unit being comprised of one post-RTO common share and one post-RTO half of a common share purchase warrant of VOTI.
Net proceeds of the offering will be used by the resulting issuer for growth working capital and general corporate purposes.
"The completion of the private placement marks a significant milestone for VOTI. Everyone involved in this project has contributed to its success. We now look forward to the next phase in VOTI's evolution", stated Rory Olson, President and Chief Executive Officer of VOTI.
The forward-looking information contained in this press release is made as of the date hereof and VOTI undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Voti Inc.
For further information: Media Contact: Ben Wagner, VOTI DetectionTM, +1.514.943.9193, [email protected]