NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
MONTREAL, Oct. 15, 2020 (GLOBE NEWSWIRE) -- PyroGenesis Canada Inc. (“ Pyro G enesis ” or the “ Company ”) (TSXV:PYR) (OTCQB:PYRNF) (FRA:8PY) is pleased to announce that is has entered into an agreement with Mackie Research Capital Corporation (as the sole underwriter and sole bookrunner, the “ Underwriter” ), pursuant to which the Underwriter have agreed to purchase, on a bought-deal basis, 1,600,000 units of the Company (the “ Units ”) for gross proceeds to the Company of $5,760,000 (the " Offering ") at a price of $3.60 per Unit.
Each Unit shall be comprised of one common share of the Company (a " Common Share ") and one-half of one Common Share purchase warrant of the Company (each whole warrant, a " Warrant "). Each Warrant shall entitle the holder thereof to purchase one additional Common Share at an exercise price of $4.50 at any time up to 24 months from Closing (as defined herein).
Provided that if, at any time prior to the expiry date of the Warrants, the volume weighted average trading price of the Common Shares on the TSX Venture Exchange (the “ Exchange ”), or other principal exchange on which the Common Shares are listed, is greater than $6.75 for 20 consecutive trading days, the Company may, within 15 days of the occurrence of such event, deliver a notice to the holders of Warrants accelerating the expiry date of the Warrants to the date that is 30 days following the date of such notice (the “ Accelerated Exercise Period ”). Any unexercised Warrants shall automatically expire at the end of the Accelerated Exercise Period.
The Company has granted the Underwriter an option (the “ Underwriter ’ s Option ”) to increase the size of the Offering by up to an additional number of Units, and/or the components thereof, that in aggregate would be equal to 15% of the total number of Units to be issued under the Offering, at any time up to 30 days following the closing of the Offering.
The net proceeds from the Offering will be used for working capital and general corporate purposes.
The Units will be offered by way of a short form prospectus to be filed in those provinces of Canada as the Underwriter may designate pursuant to National Instrument 44-101 – Short Form Prospectus Distributions and may be offered in the United States on a private placement basis pursuant to an appropriate exemption from the registration requirements under applicable U.S. law.
The Closing of the Offering is expected to occur on or about October 30, 2020 (the (“ Closing ”) and is subject to the Company receiving all necessary regulatory approvals, including the approval of the Exchange.