Mr. Clayton Fisher reports
NEW WAVE HOLDINGS ANNOUNCES CLOSING OF FIRST TRANCHE OF EQUITY OFFERING
New Wave Holdings Corp., further to its news release of May 20, 2020, has closed the first tranche of an offering of units of the company. The units were offered on a best efforts basis by Eight Capital, as lead agent and sole bookrunner, along with Gravitas Securities Inc., by way of a private placement.
The offering closed on June 17, 2020, and resulted in the issuance of an aggregate of 6,188,627 units at an offering price of 33 cents per unit for aggregate gross proceeds of $2,042,246.91. Each unit comprises one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at an exercise price of 45 cents until June 17, 2022.
If, at any time after Oct. 18, 2020, the volume weighted average trading price of the common shares on the Canadian Securities Exchange for any 10 consecutive trading days equals or exceeds 90 cents, the company may, upon providing written notice to the holders of warrants, accelerate the expiry date of the warrants to the date that is 30 days following the date of such written notice.
In connection with the offering, the company has paid the agents an aggregate cash fee of $97,002.31, issued an aggregate of 391,346 non-transferable compensation warrants, paid an advisory fee of $8,000, and reimbursed the agents for reasonable expenses and legal fees in connection with the offering. The agent's warrants are exercisable to purchase units at 33 cents per agent's unit until June 17, 2022. Each agent's unit will comprise one common share and one warrant. Each agent's unit warrant is exercisable to purchase one common share on the same terms and conditions applicable to the warrants.
The company intends to use the net proceeds of the offering to support the various investments that are currently in the company's portfolio and for working capital and general corporate purposes.
Pursuant to applicable securities laws, all securities issued in connection with the offering will be subject to a four-month-and-one-day hold period expiring on Oct. 18, 2020.
The company anticipates closing one or more additional tranches of the offering for aggregate proceeds of up to $4,000,260 ($6,000,390 if the agents' overallotment option is exercised in full).
About New Wave Holdings Corp.
New Wave Holdings is an investment issuer focused on the burgeoning psychedelic and e-sports sectors.
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