FuelPositive (NHHH.V) intends to complete a non-brokered private placement of units at $0.05 apiece, for up to $4.5 million, it said on Thursday.
Each unit will consist of one common share and one common share purchase warrant, with each warrant exercisable at $0.08 for a period of sixty months, provided that in the event the ten-day volume-weighted average closing price of the common shares on the TSX Venture Exchange exceeds $0.40, the company will have the right to speed-up the expiry of the warrants. The company expects to complete the offering in one or more tranches over the coming weeks, it said.
FuelPositive received subscriptions and commitments representing more than $4.0 million of the offering and expects to complete an initial closing in the coming days, followed by one or more additional closings thereafter. Proceeds will be used to advance the demonstration phases of its Manitoba system, support ongoing operations and working capital needs, and reduce outstanding accounts payable and accrued liabilities incurred in the ordinary course of business.
The company also announced that an aggregate of $791,250.00 in outstanding indebtedness will be settled through the issuance of 15.1-million debt units at $0.0525 apiece. Each debt unit consists of one common share and one common share purchase warrant, with each debt warrant exercisable at $0.07 for a period of sixty months.
An aggregate of $1.1 million in outstanding indebtedness will be settled through the issuance of 22.5-million debt units at $0.05 apiece. Each debt unit consists of one common share and one debt warrant, with each debt warrant exercisable at $0.08 for a period of sixty months.
The indebtedness is owed by the company to certain arm's-length service providers, with the exception of Andre Mech, a director of the company, it added.
Shares of the company closed down 12% to $0.035 on Wednesday on the TSX Venture Exchange.