Just Kitchen Holdings Corp. (TSXV: JK) announced this morning that it has entered into a bought deal financing agreement with a syndicate of underwriters led by Beacon Securities Limited for aggregate proceeds of $16 million. The company also intends to complete a non-brokered private placement for gross proceeds of approximately $4 million.
The $16 million financing is on a bought deal basis and will see Just Kitchen sell 11.9 million common shares at $1.35 per share. In addition, the underwriters also have the option to purchase up to 15% more Just Kitchen shares at the same share price.
A concurrent private placement among strategic investors is to occur on substantially the same terms, for gross proceeds of $4.0 million.
Both the bought deal and private placement offerings are expected to occur on June 15, 2021, subject to regulatory approvals. With regard to the public offering, the shares will only be sold in Canada, except the province of Quebec.
The company relayed its plans to use the proceeds from the offerings on additional spoke kitchens in Taiwan, international expansion, software development, brand acquisition and development, and general corporate purposes.
Just Kitchen Holdings Corp. last traded at $1.55 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
