GREY:XEBEQ - Post by User
Comment by
Ciaoon Mar 14, 2022 9:01pm
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Post# 34513662
RE:Did you know ?
RE:Did you know ?Brilliant, great point.
Perhaps the short wanted to keep the share price away from the $4 range. Once near $4 FTQ would no doubt exercise their warrants. They are long term shareholders. What if FTQ excercises them early and or well below $4? Were the shorts hoping to cover their short position with a equity financing as they realize XBC's appetite to raise cash for growth? This $20M would hold off the need for any immediate financing while the share price recovers.
The shorts will be running for cover once the FTQ excerices the warrants.
ZouZS3 wrote: About the increase of credit facility with FTQ.
On November 9, 2021, Xebec and FTQ entered into an amended and restated
Loan Agreement, increasing the credit facility provided by FTQ by $15.0 million and providing for the issuance of 4,500,000 warrants to FTQ at an exercise price of $4.44 per warrant for a 3-year term. This transaction provides access to additional liquidity to strengthen the Company’s strategic initiatives.
Initially, entered into a loan agreement (the “Agreement”) with the Fonds de solidarit FTQ (the “Fonds”), for an unsecured loan facility of $10 million. The loan facility has a term of 5 years. As part of the Agreement, the Fonds has been granted 3,000,000 warrants exercisable for a period of 2 years from the date of closing. Each warrant will allow the Fonds to purchase one common share of Xebec at an exercise price of $4.58, representing a 40% premium to the 20-day volume weighted average price (“VWAP”) as at closing of markets on May 4, 2020.