ExactEarth Announces Private Placement of $13 Million of Convertible Debentures and Conclusion of Strategic Review
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CAMBRIDGE, ON, Dec. 4, 2018 /CNW/ - exactEarth Ltd. ("exactEarth" or the "Company") (TSX: XCT), a leading provider of Satellite AIS data services, is pleased to announce that it has entered into definitive agreements for a private placement of 13,000 convertible debentures (the "Convertible Debentures") of the Company at a price of $1,000 per Convertible Debenture (the "Offering Price") for aggregate gross proceeds of $13,000,000 (the "Private Placement"). The purchasers of the Convertible Debentures include a limited number of new and existing institutional investors, including Hisdesat and MMCAP. The net proceeds from the Private Placement will be used to fund the Company's ongoing working capital needs in support of business operations and for general corporate purposes.
The Private Placement has been negotiated on an arm's-length basis and represents the culmination of an extensive review of strategic alternatives by a special committee (the "Special Committee") of independent members of the board of directors (the "Board") of the Company and, in the view of the Company, will provide the Company with a solid financial footing going forward.
"This private placement represents the completion of our strategic review process, and I am excited about our continued pursuit of the growing opportunities to provide enhanced capabilities and services with our unique real-time Satellite AIS service," said Eric Zahler, Chairman of the Board of exactEarth and Chair of the Special Committee.