Fineqia Announces Proposed Private Placement of Up to $1.5 Million
Rhea-AI Summary
Fineqia International Inc. (CSE: FNQ) (OTC: FNQQF) has announced a proposed non-brokered private placement to raise up to $1.5 million. The company plans to offer up to 150 million units at $0.01 per unit, with each unit consisting of one common share and one warrant. The warrants will be exercisable for three years at $0.05 per share, with an acceleration clause if the stock trades at or above $0.10 for 20 consecutive trading days.
Proceeds from the offering will be used for working capital purposes. The company may pay finder's fees and some units may be issued to directors and officers, constituting a related party transaction. Fineqia will rely on exemptions from valuation and minority shareholder approval requirements for these related party transactions.
Positive
- Potential to raise up to $1.5 million in additional capital
- Warrants provide potential for future capital influx at $0.05 per share
- Acceleration clause could lead to earlier exercise of warrants if stock performs well
Negative
- Potential dilution for existing shareholders due to issuance of up to 150 million new units
- Low unit price of $0.01 may indicate current market valuation concerns
- Related party transactions with directors and officers may raise governance concerns
News Market Reaction – FNQQF
On the day this news was published, FNQQF declined NaN%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
London, United Kingdom--(Newsfile Corp. - July 22, 2024) - Fineqia International Inc. (CSE: FNQ) (OTC: FNQQF) (FSE: FNQA) (the "Company" or "Fineqia"), the digital asset and fintech investment business, announces that it intends to undertake a non-brokered private placement (the "Offering") of up to 150,000,000 units (the "Units") at a price of
Each Unit will consist of one common share of Fineqia (a "Common Share") and one warrant to purchase one Common Share (a "Warrant"). Each Warrant will be exercisable for a period of three years from the closing of the Offering at an exercise price of
The Company may, at its option, accelerate the expiry date, provided that the closing price trades at or above
Fineqia intends to use the proceeds from the private placement for working capital purposes.
The Company may pay finder's fees in connection with the Offering.
All references to dollars ($) above are to Canadian dollars (C$).
The issuance of certain of the Units to directors and officers of the Company pursuant to the Offering will each be considered a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company will rely upon exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a), respectively, with respect to the issuance of the Units to the directors and officers.
These securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"). Accordingly, these securities may not be offered or sold in the United States or to, or for the account or benefit of, a U.S. person or person in the United States (as such terms are defined in regulations under the 1933 Act), absent an exemption from the registration requirements of the 1933 Act and applicable state laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Fineqia International Inc.
Fineqia (www.fineqia.com) is a digital asset business that builds and targets investments in early and growth stage technology companies that will be part of the next generation of the Internet. Publicly listed in Canada (CSE: FNQ) with quoted symbols on the Nasdaq and the Frankfurt Stock Exchange, Fineqia's portfolio of investments includes businesses at the forefront of tokenization, blockchain technology, RWAs, AI, and fintech. Fineqia's VC fund in formation, Glass Ventures, backs category-defining Web 3.0 and Web 4.0 companies built by world-class entrepreneurs. https://twitter.com/FineqiaPlatform and https://www.linkedin.com/company/fineqia/.
Media Contacts
Athraa Bheekoo
Luna PR
Athraa@lunapr.io
FOR FURTHER INFORMATION, PLEASE CONTACT:
Katarina Kupcikova, Marketing & Communications Manager
E. katarina.kupcikova@fineqia.com
T. +44 7806 730 769
FORWARD-LOOKING STATEMENTS
Some statements in this release may contain forward-looking information (as defined under applicable Canadian securities laws) ("forward-looking statements"). All statements, other than of historical fact, that address activities, events or developments that Fineqia (the "Company") believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the failure to obtain sufficient financing, and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities. Any forward-looking statement speaks only as of the date on which it is made except as may be required by applicable securities laws. The Company disclaims any intent or obligation to update any forward-looking statement except to the extent required by applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/217292
FAQ
What is the size and price of Fineqia's (FNQQF) proposed private placement?
What are the terms of the warrants in Fineqia's (FNQQF) private placement?
How does Fineqia (FNQQF) plan to use the proceeds from the private placement?
Are there any related party transactions in Fineqia's (FNQQF) private placement?
