Verses AI closes private placement with Sorbie

Executive Summary

• Verses AI Inc. has closed a non-brokered private placement with Sorbie Bornholm LP, establishing a financing arrangement with a notional value of CAD$14 million.
• The company received the first tranche of CAD$700,000 and expects to receive 11 additional monthly tranches based on a specific formula tied to the company's share price relative to a benchmark.
• The offering involves the issuance of 2.66 million units (including finders' fees), consisting of Class A subordinated voting shares and warrants, with net proceeds designated for working capital and general corporate purposes.

Key Details

• Transaction Structure: Non-brokered private placement with Sorbie Bornholm LP.
• Notional Value: CAD$14 million.
• Initial Proceeds: CAD$700,000 received as the first tranche.
• Securities Issued: Aggregate of 2.66 million units (including finders' fees).
  • Each unit consists of one Class A subordinated voting share and one-half warrant.
  • Warrants entitle the holder to acquire one additional common share at an exercise price of $7.
  • Warrant term: 36 months from closing.
• Future Tranche Mechanism:
  • 11 additional tranches expected to be paid monthly.
  • Tranche calculation: $1,209,091 multiplied by the percentage difference between the benchmark price ($7.75) and the trailing 20-day value-weighted average price.
  • Upside provision: If the 20-day value-weighted average price exceeds the benchmark price, the difference is added to $1,209,092, with no limit on the total amount Verses can receive.
  • Timing: Additional tranches anticipated to begin 30 days after closing.
  • Fees: Verses is responsible for an 8% brokerage fee with each tranche.
• Use of Proceeds: Working capital and general corporate purposes.
• Regulatory Hold: Securities subject to a statutory hold period of four months plus one day from the date of issuance under Canadian securities legislation.

Notable Quotes

• None provided in the text.