Evidently there is strong investor demand for QYOU Media (TSXV: QYOU), whom this morning upsized their bought deal financing. The demand has resulted in the company doubling the size of the bought deal from $5.0 million to that of $10.0 million.
Under the terms of the financing, the company will sell 35.7 million units of the company at a price of $0.28 per unit. Each unit contains one common share of the company and one half warrant, with each warrant being valid for a period of two years from the date of issuance with an exercise price of $0.45 per common share.
An over-allotment option has also been granted to the underwriters.
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Proceeds from the financing are to be used to support the expansion and growth of distribution contracts, content licensing, branding efforts and ad sales within India, as well as for working capital and general corporate purposes.
The offering is currently expected to close February 25, 2021.
QYOU Media last traded at $0.325 on the TSX Venture.
FULL DISCLOSURE: QYOU Media is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover QYOU Media on The Deep Dive, with The Deep Dive having full editorial control. Additionally, the author personally holds shares of the company. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
