- Xtract One (XTRA) will receive up to C$13.4 million from Madison Square Garden Sports
- The initial tranche of $8.4 million is effective immediately
- The company will use the proceeds to further innovate its patron screening technology and accelerate its growth into new markets
- Xtract One Technologies is a threat detection and security solutions company leveraging AI to provide seamless patron access experiences
- Xtract One (XTRA) is down by 1.82 per cent, trading at $0.54 per share
Xtract One (XTRA) will receive up to C$13.4 million from Madison Square Garden Sports.
MSG Sports properties feature some of the most recognized teams in professional sports, including the New York Knicks and the New York Rangers.
The initial tranche of $8.4 million is effective immediately, with the second tranche of $5 million being conditional on shareholder and regulatory approval. A meeting to obtain shareholder approval for the second tranche is scheduled for April 11, 2023.
The total investment is comprised of 31,925,595 units priced at $0.42 each.
Each unit is comprised of one common share and one share purchase warrant exercisable at $0.60 for five years following the date of its issuance.
MSG Sports’ $13.4 million investment would represent 16.36 per cent ownership in Xtract One on a non-diluted basis and 28.12 per cent on a partially diluted basis.
The investment grants subsidiary MSG Sports Ventures the right to appoint an observer to Xtract One’s board.
Xtract One will use the proceeds to further innovate its patron screening technology and accelerate its growth into new markets.
All securities issued will be subject to Canadian and applicable U.S. resale restrictions.
“I believe this relationship will create unique opportunities and benefit multiple industries,” said Peter Evans, CEO of Xtract One. “We continue to see impressive growth in market interest and customer adoption of our security technology solutions.”
Xtract One Technologies is a threat detection and security solutions company leveraging AI to provide seamless patron access experiences.
Xtract One (XTRA) is down by 1.82 per cent, trading at $0.54 per share as of 10:12 am EST.