Red Light Holland (CSE: TRIP) is looking to add to its war chest with the announcement this morning that the company will look to complete a bought deal financing to the tune of $5.0 million. The announcement comes just two weeks after the company announced $12.2 million was sitting in the bank as a result of $5.0 million in recent warrant exercises.
The bought deal financing, which will see Eight Capital act as the sole bookrunner and underwriter, aims to raise $5.0 million via the sale of 19.6 million units at $0.255 per unit. Each unit is to contain one common share and one common share purchase warrant, with each warrant valid for 42 months after closing while containing an exercise price of $0.38 per share.
Notably, warrants also contain an acceleration clause should the price of the equity exceed $0.89 for ten consecutive days on a volume weighted basis. A 15% over-allotment option has also been granted in connection with the offering.
Sponsored · Selkirk Copper Mines
Proceeds from the financing are to be used for general corporate purposes and working capital.
The financing is currently expected to close by January 28, 2021.
Red Light Holland last traded at $0.29 on the CSE.
Information for this briefing was found via Sedar and Red Light Holland. 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.
