Hydreight closes $15-million bought deal

Executive Summary

• Hydreight Technologies Inc. has closed an oversubscribed $15 million bought deal private placement led by Canaccord Genuity Corp. and Beacon Securities Ltd.
• The company issued 3,705,000 units at $4.05 per unit, raising gross proceeds of $15,005,250, following the full exercise of the underwriters' over-allotment option.
• Net proceeds will be used to support sales growth, expand pharmacy production lines, and fund working capital and general corporate purposes.

Key Details

• Transaction Structure: Closed bought deal private placement with Canaccord Genuity Corp. (lead underwriter/sole bookrunner) and Beacon Securities Ltd.
• Gross Proceeds: $15,005,250.
• Units Issued: 3,705,000 units.
• Price Per Unit: $4.05.
• Underwriter Option: The underwriters exercised their option to purchase an additional 1,235,000 units in full (originally up to 1,235,000 units over the base of 2,470,000 units).
• Warrant Terms: Each unit consists of one common share and one-half of one common share purchase warrant.
  • Exercise Price: $5.27 per warrant share.
  • Term: 24 months from the closing date.
• Underwriter Compensation:
  • Cash commission: $900,315.
  • Broker warrants: 222,300 non-transferable warrants exercisable at $4.05 per share for 24 months.
• Use of Proceeds: Sales growth, creating/expanding existing pharmacy production lines, working capital, and general corporate purposes.
• Regulatory Basis: Listed issuer financing exemption under National Instrument 45-106; exemptions under the US Securities Act of 1933.
• Hold Period: No hold period applies to the units or warrant shares under applicable Canadian securities laws.

Notable Quotes

• "This financing was oversubscribed within hours of announcement, reflecting strong conviction in Hydreight's execution and the durability of our model." — Shane Madden, CEO
• "The addition of multiple new high-quality institutional investors at this stage meaningfully and strategically bolsters our share register while providing further validation of our platform and is an important step as we scale." — Shane Madden, CEO