InsuraGuest Technologies (TSXV: ISGI) this morning announced the closing of its private placement. The company managed to raise gross proceeds of $2.0 million under the financing.
The financing saw a total of ten million units sold at a price of $0.20 per each. Each unit contained one common share and one common share purchase warrant. Warrants issued under the financing contain an exercise price of $0.35, and an expiry of two years from the date of issuance.
An acceleration clause is also present on the warrants, enabling the company to accelerate the expiry in the event that the equity trades above $0.50 for a period of ten days.
Proceeds from the financing are to be used for the marketing expenses of the firms post-COVID rollout, to settle accounts payable, and for general corporate purposes.
“The hospitality sector is opening back up and we are very excited to see people starting to travel again. The closing of this private placement will give Insuraguest the financial push it needs to enhance its marketing and sales in a post COVID-19 hospitality environment.”
Logan Anderson, CFO of InsuraGuest Technologies
InsuraGuest Technologies last traded at $0.325 on the TSX Venture.
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