Benzinga | Apr 9, 2021 03:03PM EDT

Abaxx Technologies Seeks To Raise $21.5M Via Upsized Bought Deal Financing

* Abaxx Technologies Inc (OTC: ABXXF) could raise gross proceeds of C$21.5 million via equity offering to institutional buyers in a private bought deal financing. The company will sell 5.6 million units at C$3.80 per unit.

* Cormark Securities and BMO Capital Markets are the underwriters for the offering. The underwriters have an option to purchase additional shares up to 0.85 million, representing 15% of the offering size.

* The offering was upsized from the previously announced C$15 million.

* The offer price represents a discount of 6.2% to Abaxx's Thursday closing price of C$4.05 on the NEO exchange.

* Each unit will consist of one share and one-half of one share purchase warrant. Each warrant will entitle the holder to acquire one share at an exercise price of C$5.10 over two years.

* Abaxx intends to use the offering proceeds for regulatory capital, working capital, and general corporate purposes.

* It held $8.9 million in cash and equivalents as of Dec. 31, 2020.

* Price action: ABXXF shares traded lower by 2.48% at $3.15 on the OTC exchange on the last check Friday.