Tokens.com Announces Closing Of $16 Million Private Placement

Rhea-AI Summary

Tokens.com Corp. (OTCQB: SMURF) has successfully closed a private placement, raising CAD$16.0 million. The offering included 17,157,345 Units at CAD$0.90 each, with net proceeds aimed for metaverse assets, cryptocurrencies for staking, and general corporate needs. The company’s CEO, Andrew Kiguel, expressed enthusiasm for expanding their investments in NFTs and DeFi. The offering was led by Stifel GMP and others, with a portion of proceeds linked to an over-allotment option. All securities are subject to a four-month hold period.

Positive

• Successfully raised CAD$16.0 million from oversubscribed private placement.
• Net proceeds will enhance investments in metaverse assets and cryptocurrencies for staking.

Negative

• None.

Not for distribution to United States newswire services or for release, publication, distribution or dissemination, directly or indirectly, in whole or in part, in or into the United States.

TORONTO--(BUSINESS WIRE)-- Tokens.com Corp. (NEO Exchange Canada: COIN)(Frankfurt Stock Exchange: 76M) (OTCQB US: SMURF) (“Tokens.com” or the “Company”), a publicly traded company that invests in revenue-generating crypto and blockchain assets linked to Decentralized Finance (“DeFi”), Non-Fungible Tokens (“NFT”) and metaverse real estate, is pleased to announce the closing of its previously announced private placement, pursuant to which it raised aggregate gross proceeds of CAD$16.0 million from the sale of units of the Company (each, a "Unit") at a price of CAD$0.90 per Unit (the "Offering").

The net proceeds from the Offering are expected to be invested into the purchase of additional metaverse assets, through the Metaverse Group, for the purchase of cryptocurrencies to be used for staking (the environmentally friendly alternative to crypto mining), and for working capital and general corporate purposes.

“We are pleased that our offering was oversubscribed and excited to further invest into metaverse NFT based real estate through our partners at Metaverse Group, and to further purchase DeFi and NFT linked tokens to be used for staking,” said Andrew Kiguel, CEO of Tokens.com. “This financing provides us the ability to enhance and grow our strategy of providing public market investors with exposure to the most exciting and fastest growing areas of crypto and blockchain technology.”

The Offering was comprised of: (i) a brokered private placement of 17,157,345 Units for aggregate gross proceeds of CAD$15,441,610 and (ii) an issuer direct private placement of 620,555 Units for aggregate gross proceeds of CAD$558,500. The brokered offering was led by Stifel GMP on behalf of a syndicate of agents, including PowerOne Capital Markets Limited, Canaccord Genuity Corp., Eventus Capital Corp., M Partners Inc. and Richardson Wealth Limited (collectively, the "Agents"), and was conducted pursuant to the terms of an agency agreement dated as of the date of this release among the Company and the Agents. The gross proceeds of the Offering included proceeds raised from the exercise, in full, of the Agents' over-allotment option.

Each Unit consists of one common share in the capital of the Company (each, a "Share") and one-half of one share purchase warrant of the Company (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire one Share at a price of CAD$1.15 per Share, subject to adjustment in certain events, until November 16, 2024.

Pursuant to the terms of the agency agreement, the Company: (i) paid the Agents a cash commission and advisory fee in the aggregate amount of CAD$912,006, and (ii) issued the Agents an aggregate of 1,013,339 broker warrants (the “Broker Warrants”). Each Broker Warrant is exercisable into one Unit (having the same terms as set out above) at a price of CAD$0.90 per Unit until November 16, 2024.

All securities issued in connection with the Offering are subject to a four-month and one day hold period under applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities sold under the Offering have not been and will not be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws, and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.

About Tokens.com

Tokens.com Corp is a publicly traded company that owns an inventory of DeFi and NFT based cryptocurrencies. Through a process called staking, Tokens.com’s inventory of cryptocurrencies is used to earn additional tokens. In addition, Tokens.com co-owns Metaverse Group Ltd., one of the world’s first NFT based, virtual real estate blockchain companies. Through its growing digital asset inventory, Tokens.com provides public market investors with a simple and secure way to gain exposure to cryptocurrencies linked to DeFi and NFTs.

Further information can be found on the Company’s website: Tokens.com.

Keep up-to-date on Tokens.com developments and join our online communities at Twitter, LinkedIn, and YouTube.

Forward-Looking Statements Disclaimer

This news release contains certain statements which constitute forward-looking statements or information under applicable Canadian securities laws, including statements relating to the expected use of proceeds from the Offering, and the expected growth and impact of the metaverse. Such forward-looking statements are subject to numerous known and unknown risks, uncertainties and other factors, some of which are beyond the Company’s control, which could cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking statements. These risks and uncertainties include changes to applicable laws or the regulatory sphere in which the Company operates, general economic and capital markets conditions, stock market volatility. Although the Company believes that the forward-looking statements in this news release are reasonable, they are based on factors and assumptions, based on currently available information, concerning future events, which may prove to be inaccurate. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future plans, operations, results, levels of activity or achievements. The forward-looking statements contained in this news release are made as of the date of this news release and, except as required by applicable law, the Company does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211116005994/en/

Tokens.com Corp.

Andrew Kiguel, CEO

Telephone: +1-647-578-7490

Email: contact@tokens.com

Jennifer Karkula, Head of Communications

Email: contact@tokens.com

Media Contact: Megan Stangl – Talk Shop Media

Email: Megan@talkshopmedia.com

Source: Tokens.com Corp.

FAQ

What is the recent funding raised by Tokens.com Corp. (SMURF)?

Tokens.com Corp. has raised CAD$16.0 million through a private placement.

What will the proceeds from the private placement be used for?

The proceeds will be invested in metaverse assets, cryptocurrencies for staking, and general corporate purposes.

What is the price per Unit in the recent Tokens.com offering?

The price per Unit in the recent offering was CAD$0.90.

Who led the recent private placement for Tokens.com (SMURF)?

The private placement was led by Stifel GMP and a syndicate of agents.