LiteLink Technologies Inc (CSE:LLT) (OTCMKTS:LLNKF) announced Monday that its wholly-owned subsidiary uBUCK Technologies SEZC will launch a non-brokered private placement to raise aggregate gross proceeds of up to US$4 million.
The company will offer up to 8 million preferred shares at a price of US$0.50 per share, according to a statement.
uBUCK, based in the Cayman Islands, intends to use the proceeds to complete the development of the uBUCK and Streambucks peer-to-peer digital wallets, accelerate growth and increase customer acquisitions.
The closing of the initial tranche of $400,000 of the offering is scheduled to occur on or about September 30.
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Under the terms of the offering, uBUCK expects an initial investment of US$1.5 million will be made in exchange for 3 million preferred shares at a price of US$0.50 per share by June 30, 2020.
Following the first milestone installment of US$1.5 million, the investor will have the option, until September 30, 2021, to invest an additional US$2.5 million for a total of 8 million preferred shares at a price of $0.50 per share.
Non-dilutive for LiteLink shareholders
The private placement is a non-dilutive transaction for LiteLink shareholders. The transaction will be subject to all necessary regulatory approvals and may close in one or more tranches. The first tranche is expected to close on or about September 30.
The initial investment of US$1.5 million would give the investor a 6% ownership in uBUCK, and an additional US$2.5 million investment would result in a 16% ownership of uBUCK.
The preferred shares come with first rights to dividends of 6% (of the amount invested) and first claims to assets up to the investment in case of liquidation.
LiteLink Technologies, based in Burnaby, British Columbia, develops enterprise platforms that use artificial intelligence, blockchain, and predictive analytics to solve outdated technology problems in the logistics and digital payment industries.
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