Exro Technologies Inc T.EXRO

A Small Improvement - No $2.00 Warrants

[Bookworm28]

 

Exro amends broker warrants of $17.5-million financing

 

2022-02-01 19:19 ET - News Release

 

Mr. Jake Bouma reports

EXRO ANNOUNCES FURTHER AMENDMENT TO BOUGHT DEAL FINANCING

Further to the press releases issued on Jan. 26, 2022, and Jan. 27, 2022, Exro Technologies Inc. has entered into a further amended underwriting agreement respecting its $17.5-million bought deal financing.

Formerly, the underwriters in the financing were to receive broker's compensation warrants equal to 6% of the number of units sold in the financing, exercisable at the $1.60 offering price to buy units consisting of one common share and one half of a share purchase warrant, with each whole warrant exercisable for an additional common share at a price of $2.00 for 36 months following closing. Under the amended underwriting agreement, the broker's compensation warrants are each exercisable for one common share at a price of $1.60 per common share, and do not entitle the underwriters to receive any underlying share purchase warrants.

An amended and restated underwriting and prospectus supplement have been filed under the Company's profile at www.sedar.com incorporating reflecting this amendment to the underwriters' compensation.

About Exro Technologies Inc.

Exro is a clean technology company pioneering intelligent control solutions in power electronics to help solve the most challenging problems in electrification. Exro has developed a new class of control technology that expands the capabilities of electric motors, generators, and batteries. Exro enables the application to achieve more with less energy consumed.

Exro's advanced motor control technology, the Coil Driver(TM), expands the capabilities of electric powertrains by enabling intelligent optimization for efficient energy consumption. Exro is working with many partners from all over the world to bring their technology to the electric mobility industries and beyond.

We seek Safe Harbor.

[JohnnyUtah44]

...Much Better, but who was the NOOB that suggested this in the 1st place...CFO..... if he did, then he needs to GO !!!! ...... someone is not use to this Level of Play, it happens, BOD needs to FIRE someone....MO

[jboom70]

Never seen this before. Why would the underwritters give up the warrants? 

[Exergy]

Yeah you right jboom why would they give up their warrants is bewildering!!! Very weird

[jboom70]

The only thing that would make sense to me is that something material happened to make Exro much more attractive. 

[Bookworm28]

One scenario that makes sense is the company was taking so much heat from being overly generous that they asked the underwriters to cut them some slack. I can't see the underwriters dropping the warrants unless they agreed. Which bodes well for the Co's image, and the underwriters desire to keep that relationiship going. I'm curious to see how the market reacts.

[jboom70]

Bought deals are understood to be well below market cause they don't carry risk, they are cash in the bank and you don't have to wait for the underwriters to sell it. Any other way could have been a disaster. They can ask the underwriters to cut them slack but I wouldn't, not without a good reason.

[Wriggles]

The TSX probably refused to accept the fees as being overly generous.  What they dropped in the amendment was the warrant within a warrant..

[BSdetector2016]

You mean egregious, not that the remainder of the financing isn't. Chief Faaq-up Officer needs to go, and Ozdemir needs a stern pep talk.

[v1pro]

They have to steady the ship as the financing is now closevto a failure. EXRO has to steady the share price at about 1.60 before the financing closes on Feb 4 ...if not a lot of these new shares will be dumped or if not allocated by the brokers they will lower the price. Extreme risk at the moment.

[Moemoney42]

In my mind its Eight Cap. and RJ that need to steady the share price.. they're the ones with the glowing price projections of $8 & $6 recently tabled.. if they're going to sell this paper to their clients, they better have a stock that looks like it has a chance of appreciation, or they'll be stuck with it..!! 

[Moemoney42]

Not to mention that the reason for the repricing could be the possibility of the regulators looking at this transaction and finding some dirty moves..?? So they thought they'd clean up the deal a bit..??  JMHO

[jboom70]

Exactly it;s a bought deal. Money in the bank. Flipside is they didn't walk into this blindly. They know the game and what would happen.

[John4434]

not many answers and lots of questions. If Sue does not talk to us after the financing is settled then I'm lost.