Frequency Exchange increases private placement to $2M

Executive Summary

• Frequency Exchange Corp. has upsized its non-brokered private placement from $1.5 million to $2 million.
• The offering consists of up to 8 million units priced at $0.25 per unit, with each unit comprising one common share and one common share purchase warrant.
• Proceeds will be used to expand the team, cover operating costs, upgrade technology, pay down debt, support marketing, and purchase inventory following the expansion of FREmedica’s technology rights.

Key Details

• Transaction Size: Increased from $1.5 million to $2 million.
• Units Offered: Up to 8,000,000 units.
• Price Per Unit: $0.25 CAD.
• Warrant Terms: Each unit includes one common share purchase warrant with an exercise price of $0.40 per warrant.
• Warrant Expiry: 24 months from the date of closing.
• Acceleration Clause: If the volume-weighted average trading price on the TSX Venture Exchange is at least $0.70 for 10 consecutive trading days within 24 months of closing, the company may accelerate the warrant expiry date (with at least 21 days' notice).
• Finders' Fees: Up to 8% in cash and 8% in finders' warrants (with identical terms to the investor warrants) may be paid.
• Regulatory Conditions: Subject to TSX Venture Exchange approval; securities are subject to a four-month hold period.
• Use of Proceeds:
  • Expand team.
  • Cover general operating costs.
  • Technology upgrade.
  • Pay down accrued debt.
  • Support marketing initiatives in consumer and public markets.
  • Purchase increased inventory driven by demand following the expansion of FREmedica Technologies Inc.'s patented technology rights to include all general wellness markets for wearables for humans and animals worldwide.

Notable Quotes

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