Fobi AI Announces Private Placement of Units for Aggregate Gross Proceeds of Up To C$2,000,000
VANCOUVER, BC, February 2, 2024, Fobi AI Inc. (FOBI:TSXV) (FOBIF: OTCQB) (the “Company” or “Fobi”), an industry leader in harnessing AI and data intelligence to enable digital transformation, is pleased to announce a non-brokered private placement financing (the “Offering”) of up to 28,571,428 units of the Company (“Units”) at a price per Unit of C$0.07 for aggregate gross proceeds of up to approximately C$2,000,000. Each Unit shall consist of one (1) common share in the capital of the Company (a “Common Share”) and one (1) common share purchase warrant (each, a “Warrant”). Each Warrant shall be exercisable to acquire one (1) additional common share in the capital of the Company at an exercise price of C$0.14 until the earlier of (i) thirty-six (36) months from the date of issuance of the Warrants; and (ii) in the event the volume weighted average price of the Common Shares on the TSX Venture Exchange (the “TSXV”) for any continuous 10 trading day period meets or exceeds $0.21 following the closing of the Offering (the “Acceleration Condition”), the date that is thirty (30) days following the issuance of a news release by the Company announcing the acceleration of the expiry of the Warrants, which such news release may be issued at any time following the trigger of the Acceleration Condition (the “Acceleration Right”). For avoidance of doubt, the Company shall not be obligated to exercise the Acceleration Right at any time.
There is an offering document related to the Offering that can be accessed under the Company’s profile at www.sedarplus.ca and on the Company’s investor website at https://investors.fobi.ai/life-offering-subscription-agreement. Prospective investors should read this offering document before making an investment decision.
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”), the Units issuable pursuant to the Offering will be offered for sale to purchasers resident in Canada (other than Quebec) and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the “Listed Issuer Financing Exemption”). Because the Offering is being completed pursuant to the Listed Issuer Financing Exemption, the securities issued under the Offering will not be subject to a hold period pursuant to applicable Canadian securities laws.
The Company may engage one or more agents or finders in connection with the Offering and may pay such parties fees as may be agreed between the Company and such parties.
The Company intends to use the net proceeds of the Offering for sales and marketing, product expansion and integration, market expansion, and general working capital and corporate expenses.
The closing of the Offering is expected to occur on or about February 15, 2024, or such other date or dates as the Company may determine, and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including approval from the TSXV.
The securities of the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referenced in this press release, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
This press release is available on the Fobi website.