Universal Digital closes first tranche of financing

Executive Summary

• Universal Digital Inc. has closed the first tranche of its brokered private placement, raising gross proceeds of $1,458,780.
• The company intends to use the net proceeds to acquire a strategic equity and warrant position in Tokyo Stock Exchange-listed ReYuu Japan Inc., subject to regulatory approval, with remaining funds for working capital.
• The offering consists of units priced at 60 cents each, comprising one common share and one-half of one common share purchase warrant exercisable at 80 cents.

Key Details

• Transaction Structure: Brokered private placement conducted by Beacon Securities Ltd. (lead agent/sole bookrunner) and Hampton Securities Ltd. on a best efforts basis.
• Units Issued: 2,431,300 units.
• Price: 60 cents per unit.
• Gross Proceeds: $1,458,780.
• Warrant Terms: Each unit includes one-half of one common share purchase warrant. Each warrant allows the holder to acquire one common share at an exercise price of 80 cents per share for a period of 24 months from closing.
• Use of Proceeds:
  • Acquisition of a strategic equity and warrant position in ReYuu Japan Inc. (Tokyo Stock Exchange-listed).
  • Working capital and general corporate purposes.
• Regulatory/Exemption: Issued under the listed issuer financing exemption (Part 5A of National Instrument 45-106) and Coordinated Blanket Order 45-953; not subject to a statutory holder period.
• Future Tranche: The company expects to close another tranche of the offering in due course.
• ReYuu Investment Conditions: Subject to customary closing conditions, including regulatory approval under Japan's Foreign Exchange and Foreign Trade Act.