Mobilicom, a technology company, experienced a significant decline in share prices during premarket trading after entering into an agreement with institutional investors for a registered direct offering. The agreement involved the purchase and sale of 1.9 million American depositary shares (ADS) at an effective price of $1.55 per ADS.
Concurrent Private Placement and Unregistered Warrants
In addition to the direct offering, Mobilicom also agreed to issue and sell unregistered warrants to the investor in a concurrent private placement. These warrants allow for the purchase of up to 1.9 million ADSs. It is worth noting that each ADS represents 275 ordinary shares.
Closing Date and Exercise Details
The offering is expected to conclude on or around Tuesday. The warrants will have an exercise price of $1.55 per ADS and can be exercised at any time upon issuance. Furthermore, once issued, the warrants will remain valid for a period of five years from the initial exercise date.
Utilizing Proceeds for Working Capital
The anticipated proceeds from the offering are expected to reach $2.95 million. Mobilicom plans to allocate these funds towards working capital and general corporate purposes.
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