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Blackline Safety Corp. ("Blackline" or the "Company") (TSX: BLN) a global leader in connected safety technology, is pleased to announce the closing of its previously announced bought deal short-form prospectus offering (the “Offering”) of common shares of the Company (“Common Shares”). The Offering was conducted through a syndicate of underwriters led by Canaccord Genuity and included ATB Securities Inc., Ventum Financial Corp., National Bank Financial Inc., Raymond James Ltd., TD Securities Inc., Beacon Securities Limited and Lightyear Capital Inc. (collectively, the "Underwriters"). In connection with the Offering, the Company issued a total of 5,692,500 Common Shares at an issue price of $4.05 per Common Share for aggregate gross proceeds of approximately $23 million, which included 742,500 Common Shares issued pursuant to the full exercise of the over-allotment option granted to the Underwriters in connection with the Offering.
Concurrent with closing of the Offering, the Company also completed a non-brokered private placement (the "Private Placement") of 2,846,250 Common Shares at a price of $4.05 per Common Share for gross proceeds of approximately $11.5 million to DAK Capital Inc. ("DAK"), which included all 371,250 additional Common Shares issuable pursuant to the Private Placement as a result of the full exercise of the over-allotment option by the Underwriters on the basis of 0.5 of an additional Common Share in the Private Placement for every one Common Share issued pursuant to the over-allotment option.
As a result of the completion of the Offering and Private Placement, the Company has raised aggregate gross proceeds of approximately $34.6 million, which amounts will be used to add capacity to support the Company's equipment leasing program, as well as to support the application of artificial intelligence to its 225 billion points of customer worksite data, and for general corporate and working capital purposes.
Early Warning Disclosure
Pursuant to the Private Placement, DAK acquired 2,846,250 Common Shares at an issue price of $4.05 per share. After giving effect to the Common Shares acquired by DAK pursuant to the Private Placement, DAK currently beneficially owns, or exercises control or direction over, 21,199,559 Common Shares or approximately 25.97% of the issued and outstanding Common Shares (on a non-diluted basis) after giving effect to the issuance of the Common Shares pursuant to the Offering and the Private Placement. DAK acquired the 2,846,250 Common Shares described herein for investment purposes. DAK may increase or decrease its beneficial ownership or control over securities of the Company as circumstances or market conditions warrant. DAK will file an early warning report, pursuant to National Instrument 62-103, in respect of its acquisition of Common Shares, and this report will be available on the Company’s SEDAR+ profile at www.sedarplus.ca or by contacting DAK at 2700 ‐ 10111 104 Avenue Edmonton, Alberta T5J 0J4 Phone: (780) 990-0505.
About Blackline Safety: Blackline Safety is a technology leader driving innovation in the industrial workforce through IoT (Internet of Things). With connected safety devices and predictive analytics, Blackline enables companies to drive towards zero safety incidents and improved operational performance. Blackline provides wearable devices, personal and area gas monitoring, cloud-connected software and data analytics to meet demanding safety challenges and enhance overall productivity for organizations with coverage in more than 100 countries. Armed with cellular and satellite connectivity, Blackline provides a lifeline to tens of thousands of people, having reported over 225 billion data-points and initiated over seven million emergency alerts. For more information, visit BlacklineSafety.com and connect with us on Facebook, X (formerly Twitter), LinkedIn and Instagram.
Note Regarding Forward-Looking Statements
This press release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the anticipated use of the net proceeds of the Offering and Private Placement and the filing of an early warning report by DAK on SEDAR. Although Blackline believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Blackline can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the net proceeds of the Offering and Private Placement by Blackline might change if the board of directors of Blackline determines that it would be in the best interests of Blackline to deploy the proceeds for some other purpose and the filing of the early warning report by DAK may not be made in the manner described herein. The forward-looking statements contained in this press release are made as of the date hereof and Blackline undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Blackline will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.
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