Vecima tees up $10M offering to repay credit line
VICTORIA, British Columbia, Canada – Vecima Networks Inc. ("Vecima" or the "Company") (TSX:VCM), is pleased to announce that it has entered into an agreement with Raymond James Ltd. and Cormark Securities Inc. (together, the "Agents"), pursuant to which the Agents have agreed to offer for sale 507,100 common shares (the "Common Shares") in the capital of the Company at a price of $17.75 per Common Share (the"Issue Price") for aggregate gross proceeds to the Company of approximately $9 million (the "Offering").
In addition, the Company has granted the Agents and option (the "Agents' Option"), exercisable up to 48 hours prior to closing to offer for sale 56,280 Common Shares, for market stabilization purposes and to cover over-allotments, if any. In the event the Agents Option is exercised in its entirety total gross proceeds to the Company will be approximately $10 million. The Agents have agreed to purchase the Common Shares which remain unsold on the Closing Date, for investment purposes, at the Issue Price.
The Company intends to use the net proceeds of the Offering for the repayment of the line of credit.
The Offering is expected to close on or about December 14, 2022, subject to customary closing conditions, including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
Read the full announcement here.