Kraken Robotics announces $17.5M bought deal offering
by CM Staff
Kraken expects to use the net proceeds to facilitate its long term strategy, including potential investment in facilities, expanding manufacturing capacity, anticipated working capital for expansion of sole-source/single award programs and high probability pipeline opportunities.
ST. JOHN’S — Kraken Robotics Inc. announces that it has entered into an agreement with a syndicate of investment dealers led by Cormark Securities Inc. pursuant to which the Underwriters have agreed to purchase 18,422,000 common shares from the treasury of the Company, at a price of $0.95 per Common Share and offer them to the public by way of short form prospectus for total gross proceeds of $17,500,900.
The Company has granted the Underwriters an option to purchase up to an additional 15.0% of the Common Shares of the Offering on the same terms exercisable at any time up to 30 days following the closing of the Offering, for market stabilization purposes and to cover over-allotments, if any.
Kraken expects to use the net proceeds to facilitate its long term strategy, including potential investment in facilities, expanding manufacturing capacity, anticipated working capital for expansion of sole-source/single award programs and high probability pipeline opportunities, further strengthen the Company’s balance sheet in anticipation of upcoming customer and partners decisions and source selection on additional large, new program and contract opportunities, and for general corporate purposes.
Closing of the Offering is expected to occur on or about May 16, 2024, and is subject to regulatory approval including that of the TSX Venture Exchange.
