Pesorama closes $3.5-million first tranche of financing

Executive Summary

• Pesorama Inc. completed the first closing of its equity offering, raising gross proceeds of $3.5 million.
• The company sold 14 million units at a price of 25 cents per unit, with each unit consisting of one common share and one common share purchase warrant.
• A second tranche of the total $5 million financing is expected to close next week, subject to final approval of the TSX Venture Exchange.

Key Details

• Gross Proceeds: $3.5 million raised in the first closing.
• Total Offering Size: $5 million total equity financing.
• Units Sold: 14 million units.
• Price Per Unit: 25 cents.
• Unit Composition: Each unit comprises one common share and one common share purchase warrant.
• Warrant Terms:
  • Each warrant entitles the holder to acquire one common share.
  • Exercise Price: 40 cents per warrant share.
  • Expiry: 18 months from January 20, 2026 (60 days following the closing date).
  • Acceleration Clause: If the daily volume-weighted average trading price is equal to or greater than 60 cents for 10 consecutive trading days, the company may accelerate the warrant expiry date by issuing a news release, with the new expiry being 30 days following the issuance of the notice.
• Finder’s Compensation:
  • Cash Commission: $210,000 paid to arm's-length finders.
  • Finder Warrants: 840,000 non-transferable warrants issued.
  • Finder Warrant Terms: Exercisable into one unit at a price of 25 cents, exercisable on or before May 21, 2027.
• Use of Proceeds: Store expansion and working capital.
• Regulatory Status: Issued pursuant to the listed issuer financing exemption (LIFE) under Part 5A of National Instrument 45-106; subject to final approval of the TSX Venture Exchange.
• Future Timeline: Second tranche expected to close next week.

Notable Quotes

• None provided in the text.