Xtract One Technologies Inc. T.XTRA

Financing Closed

[kidl2]

Patriot One Technologies closes $6.44-million financing

Patriot One Technologies Inc (C:PAT)
Shares Issued 151,678,622
Last Close 3/16/2022 $0.52
Thursday March 17 2022 - News Release

Mr. Peter Evans reports

PATRIOT ONE CLOSES PUBLIC OFFERING

Patriot One Technologies Inc. has closed the previously announced public offering conducted through Echelon Wealth Partners Inc. as sole agent and bookrunner.

Pursuant to the offering, the company issued 10,743,450 units at a price of 60 cents per unit, for total gross proceeds of $6,446,070. Each unit consists of a common share of the company and one common share purchase warrant. Each warrant is exercisable into one common share until March 17, 2025, at an exercise price of 75 cents, subject to adjustment in certain events.

In connection with the offering, the agent received a cash fee of $439,310 and 732,183 common share purchase warrants. Each agent's warrant is exercisable into one common share at an exercise price of 60 cents until March 17, 2024.

Patriot One intends to use the proceeds of the offering for working capital and general corporate purposes.

Insider participation

Certain directors and senior officers of the company participated in the offering by purchasing an aggregate of 148,400 units. Accordingly, the offering constituted to that extent a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the offering by the company's directors and officers does not exceed 25 per cent of the market capitalization of the company in accordance with MI 61-101. The company did not file a material change report more than 21 days before the expected closing of the offering as the details of the offering and the participation therein by related parties of the company were not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons.

© 2022 Canjex Publishing Ltd.

[pliskenNYC]

That was fast, something is up.. this was done expeditiously, This smells strategic.. they do not seem all that interested in wanton cash grabbing and dilution.. Peter is keeping his integrity intact so far..

[kidl2]

I agree with you. They could have allowed for more time to close the PP to better their chances of getting the full amount. They could have also extended the closing date but instead they took a lesser amount.   Yes, his is clearly strategic as they had enough cash to last a few more months.   This looks to me like they needed a certain amount of capital at a certain date to secure a

[Jahpatriot]

@kid12. I was thinking the very same as to the quick closure and the possibility of them already having someone lined up. Well, as long as the SP heads north and we all make money.

[Yajne]

I like how this financing was done, quickly and not the usual discount to market. Keep in mind there should be another $8million available soon "subject to adjustment in certain events". Just a guess, but the IMO they have included a 'forced conversion' clause if the sp stays above a certain price for a period of time, for example $1 for 10 consecutive trading days (only intended

[Nightstocker]

I think if they extended their deadline date, it might have been perceived as desperate and send the wrong message. At the end of the day, Pat got two thirds of the offering sold in a very short time. This pads their coffers for the next big push. All IMO

[pliskenNYC]

Most of all it shows that the smart money stayed put.. the market overreacted.. turns out the company doesn't even want the full amount... which shows a very uncommon amount of honesty & integrity and it really deserves recognition. Once again... we were right.. long and strong.. all in my personal opinion 

[mrpancake]

They could only sell what two thirds and somone said they did not want the full amount? FWIW most well received offering are over- subscribed.... Also insiders bought $148K shares - that's people like Peter van der Gracht $3000 worth - that about a weeks salary for a guy like Peter...pathetic lack of support. There was millions of shares still available yet he stops at 5000 shares...telling