EnWave Corp. (TSXV:ENW – $1.06 CAD & OTC:NWVCF – $0.86 USD & Frankfurt:E4U – €0.70) successfully closed its public offering that it announced early November. The Company added gross proceeds of no less than $10,006,500 to its bank account.
A syndicate of underwriters, led by Cormark Securities, sold 8,760,000 EnWave units at a price of $1.05 per unit for aggregate gross proceeds of $9,198,000. Each unit consists of one common share of EnWave and one-half warrant. Each full warrant entitles the holder to purchase an additional EnWave share at $1.50 for a period of 60 months following the closing of the offering.
In addition, EnWave sold, on a non-brokered private placement basis, 770,000 units for gross proceeds of up to $808,500. These units are identical to the previous ones, except that they are subject to a statutory four-month hold period, which expires on March 16, 2018.
Note that the warrants will be publicly listed. They are expected to commence trading under the ticker symbol “ENW.WT” on or before November 20th, 2017.
The net proceeds of the financing – EnWave paid the Underwriters a cash fee equivalent to 6% of the gross proceeds – will immediately be utilized to accelerate EnWave’s growth. For example, several large scale quantaREV and nutraREV units will be manufactured so that lead times become shorter.
Also, additional staff will be hired, such as a LEAN consultant to optimize the engineering and manufacturing process; a technical sales person to further expand the business development pipeline; and additional engineers to help with the installation and manufacture of the REV dryers.
Furthermore, NutraDried, the 51% owned joint venture of EnWave, may soon need to purchase an additional REV machine as distribution of the popular Moon Cheese snacks continues to increase.
EnWave could have raised $25 million in this offering if it wanted to, indicating that interest from institutional parties was extremely high. In fact, the financing added a double-digit amount of new institutional shareholders. This more than ever shows the confidence that professional investors have in the future of the technology Company. Recommendation BUY.
|Smallcaps.us Advice: Buy||Price Target: $3.41||Latest Company Report (pdf)|
|For important disclosures, please read our disclaimer.|