A number of companies started the week off yesterday with major announcements, and this morning many of those companies will be in focus among investors. On April 8, Cloud DX Inc. (OTC:CDXFF) announced a proposed non-brokered private placement through the issuance of 23,333,334 units of the company at a price of $0.12 each.
The company would be seeking to raise gross proceeds to the tune of $2,800,000 from the private placement. It was also noted in the news release that Cloud DX also had the right to oversubscribe the private placement by a maximum of $500,000 and, hence, sell a maximum of an additional 4,166,667 units. The company would issue those additional units if there was considerable demand. Each unit that would be offered by the company would be made up of one common share in Cloud DX and one transferable share purchase warrant. The holder of a warrant would be entitled to pick up an additional common share for the price of $0.18 per share up until 36 months have passed since the day of the closing.
The company also revealed yesterday that the finder’s fee could be payable as per the policies of the TSX Venture Exchange. The net proceeds raised by Cloud DX from the placement would be used for general working capital purposes. In the news release, the company also announced that the private placement still needed approval from the exchange.
All the securities that would be issued as part of the private placement were going to be subject to a statutory hold period of four months and a day since the date of issuance. Additionally, company insiders would also be permitted to participate in the private placement if they so wished. However, the extent to which insiders could participate had not been decided. It remains to be seen if the Cloud DX stock gets any traction today.
