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Looking Glass Labs Ltd (2)
Symbol NFTX
Shares Issued 1,985,764
Close 2023-11-10 C$ 0.185
Market Cap C$ 367,366
Recent Sedar Documents

Looking Glass arranges $1.1-million private placement

2023-11-10 20:09 ET - News Release

Mr. Dorian Banks reports

LOOKING GLASS LABS ANNOUNCES PRIVATE PLACEMENT FINANCING AND DEBT SETTLEMENT

Looking Glass Labs Ltd. has arranged a non-brokered private placement offering of up to 11 million units at a price of 10 cents per unit, for gross proceeds of up to $1.1-million. Each unit will consist of one common share in the capital of the company and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one additional share of the company at an exercise price of 10 cents for a period of twp years from the closing date of the offering.

The gross proceeds from the offering will be used by the company for general corporate and working capital purposes.

The company also advises that its board of directors has approved the settlement of $1,008,000 in debt through the issuance of 10.08 million units of the company to arm's-length creditors for outstanding promissory notes. The units will be issued on the same terms and conditions as the offering. The company agreed to satisfy this outstanding indebtedness with units to preserve the company's cash for working capital.

The offering and debt settlement are expected to close concurrently on or about Nov. 17, 2023, and remain subject to receipt of all applicable regulatory approvals, including the approval of the NEO Exchange Inc., now operating as Cboe Canada.

All securities issued pursuant to the offering and debt settlement will be subject to a statutory hold period of four months plus a day from issuance in accordance with applicable securities laws.

The company is currently seeking and will need to secure additional sources of working capital to continue operations. The company's plan is to actively secure additional sources of funds, including possible equity and debt financing options, while at the same time focus on exercising careful cost control to sustain operations and, if necessary, the company will curtail spending. Financings are dependent on market conditions and there can be no assurance the company will be able to raise funds in the future. As a result of challenging current capital market conditions and the company's business market sector, comprising blockchain technology, metaverse development and non-fungible token product offerings, experiencing economic challenges, the company has had difficulty securing sufficient equity funding for working capital.

Under the current circumstances as summarized herein, the independent directors of the company, acting in good faith, have determined that the company is in serious financial difficulty, that the offering and debt settlement are designed to improve the company's financial position in the near term and that the terms of the offering and debt settlement are reasonable in the company's circumstances. Furthermore, no related parties will be participating in the offering. The company's independent directors have also determined that a rights offering to existing securityholders on the same terms as the offering would not be feasible to complete

The directors of Looking Glass Labs take responsibility for this announcement.

About Looking Glass Labs Ltd.

Headquartered in Vancouver, B.C., Looking Glass Labs specializes in consumer engagement applications to leverage immersive metaverse environments, gamification and Web 3.0/blockchain monetization strategies.

We seek Safe Harbor.

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