QYOU Media To Conduct $5.0 Million Bought Deal Financing
QYOU Media (TSXV: QYOU) this evening announced that it is conducting a bought deal financing. Lead by Canaccord Genuity and Gravitas Securities, the financing will see the company raise gross proceeds of $5.0 million.
Under the terms of the financing, the company will look to sell 17.9 million units of the company at a price of $0.28 per unit. Each unit is to contain one common share and one half of a common share purchase warrant. Each warrant is valid for a period of two years and contains an exercise price of $0.45 per share.
An over-allotment option has also been granted in connection with the financing.
Net proceeds from the financing are to be used to support the expansion and the growth of distribution contracts, ad sales, content licensing and branding efforts in India. Proceeds will also be used for working capital and general corporate purposes.
QYOU Media last traded at $0.345 on the TSX Venture.
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What does that mean for investors with shares at current $0.345 shares?