Kraken Robotics Inc. is pleased to announce that it has closed its previously announced “bought deal” short form prospectus offering of common shares of the company.
A total of 32,343,750 common shares were sold at a price of $1.60 per common share for gross proceeds of $51,750,000, inclusive of the full exercise of the over-allotment option by the underwriters.
The offering was led by Cormark Securities Inc. as lead underwriter, on behalf of a syndicate of underwriters including Canaccord Genuity Corp., Beacon Securities Limited, Raymond James Ltd., and Scotia Capital Inc.
The underwriters received a cash commission equal to 5.0% of the gross proceeds of the offering, which is $2,587,500.
The net proceeds of the offering are expected to be used to advance the company’s long-term strategy, including investing in expanded facilities and increased manufacturing capacity and providing flexibility to take advantage of opportunities for accretive acquisitions of complementary technologies and businesses.
The long-term strategy also includes increasing the company’s attractiveness as a stable and reliable long-term supplier, strengthening the company’s balance sheet to provide additional working capital to meet customer requirements in connection with potential additional large orders, as well as new program and contract opportunities, and for general corporate purposes.
The offering is subject to TSX Venture Exchange’s final acceptance of requisite regulatory filings.