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VANCOUVER, BC / ACCESSWIRE / October 22, 2024 / LQWD Technologies Corp. (TSXV:LQWD)(OTCQB:LQWDF) ("LQWD" or the "Company") is pleased to announce that due to demand LQWD will increase its previously announced non-brokered private placement to aggregate gross proceeds of up to $3,740,000 (the "Private Placement"), which was previously announced on September 27, 2024, and October 9, 2024.
Under the fully subscribed first tranche of the Private Placement, which closed on October 9, 2024, the Company issued an aggregate of 3,200,000 units of the Company at a price of $0.70 per unit to raise gross proceeds of $2,240,000. A second and final tranche of the Private Placement of up to an additional 2,307,692 units at a price of $0.65 per unit for proceeds of up to $1,500,000, remains open and is expected to close in November 2024.
Each $0.65 unit will consist of one common share of the Company and one-half of one common share purchase warrant. Each full warrant is exercisable into one common share at an exercise price of $0.90 per share at any time up to 18 months following the closing date of the Private Placement.If the volume weighted average trading price of the common shares on the TSX Venture Exchange ("TSXV") is equal to or greater than $1.25 for a period of 20 consecutive trading days, the Company will have the right to accelerate the expiry date of the warrants by giving written notice that the warrants will expire on the date that is not less than 10 days from the date notice is provided by the Company to the warrant holder.
The common shares and warrants from the Private Placement are subject to a 4 month hold period before becoming free trading.
The net proceeds from the Private Placement will be used for, but are not limited to, continuing to expand LQWD's Lightning Network business, which includes purchasing Bitcoin and expanding the developer team in accordance with the Company's business strategy, and for general working capital purposes. Completion of the Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including acceptance of the TSX-V. It is anticipated that existing shareholders, directors, and management will be participating in the Private Placement. In connection with the Private Placement, the Company may pay a finder's fee of up to 5% on the applicable portion of the Private Placement.
In connection with the $0.70 unit first tranche of the Private Placement, the warrants are also subject to acceleration provisions. If the 30 day volume weighted average trading price of the common shares on the TSX-V is greater than 10% above the applicable exercise price of the warrants and the 30 day average daily volume of the common shares on the TSX-V exceeds 5,000,000 common shares per day, then the Company may provide notice in writing to the holders of the warrants that the expiry date of the warrants will be accelerated in whole or in part, to a period which is 61 days following the date of such notice.