Kontrol Technologies Corp. (NEO: KNR) recently announced that it has entered into a securities purchase agreement for a private placement with institutional investors to raise $8.5 million. The company will issue up to 5,666,332 shares and warrants to purchase up to 2,833,166 shares.
Under the agreement, Kontrol Technologies will be offering units of the company at $1.50 per unit. Each unit is composed of a common share and half of a warrant to purchase a common share at $1.75 per share within three years from issuance. Should all warrants be exercised, Kontrol will be able to raise an additional $5.0 million.
The net proceeds are expected to be utilized for capital expenditures, working capital, and general corporate purposes.
Alliance Global Partners serves as the exclusive placement agent for the offering in the United States while no securities will be offered for sale in Canada.
The offering is expected to close on June 1, 2021.
Kontrol Technologies Corp. last traded at $1.75 on the NEO.
Information for this briefing was found via Sedar and Kontrol Energy Systems. 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.