FaceDrive Inc (TSXV: FD) this morning closed on its previously announced non-brokered financing. The funding saw the company raise capital at a price of $0.59 per unit, with the financing marking the second such fundraising undertaken in March.
Under the terms of the financing, the company raised gross proceeds of $17.5 million via the sale of 29.7 million units. Each unit contained one common share and one common purchase warrant, with warrants valid for a period of three years from the date of issuance and containing an exercise price of $0.73 per share.
Funds raised are reportedly to be used for the firms “next stages of its growth plan,” which includes the development of its electric vehicle subscription platform known as Steer EV, as well as further tech development for its platform.
“We see continued investor interest, evidenced by the oversubscribed nature of this financing, as a strong validator of the market’s confidence in our vision, mission and strategy. Having achieved many crucial operational milestones and our level of maturity, we are now – more than ever – laser-focused on accelerated year-over-year revenue and market share growth,” said CEO Suman Pushparajah.
The financing was notable in that it was a down-round from a financing completed just weeks ago, which raised $4.7 million at a price of $0.64 per unit. A total of 7.3 million units were issued under that offering, with all subscriptions being fulfilled by insiders of the company. Those funds were earmarked for general working capital purposes and general business development purposes.
Facedrive Inc last traded at $0.84 on the TSX Venture.
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