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Australis Capital Inc. (CSE:AUSA) (OTC:AUSAF) announced that it has entered into a capital commitment Agreement with LDA Capital Limited, a global investment group, to secure up to CA$10 million ($7.9 million) in committed equity capital.
The total commitment is renewable at the company's option, for an additional CA$10 million under the same terms and conditions of this agreement.
The agreement grants AUDACIOUS the right, at its discretion, to issue shares in tranches for up to CA$10 million.
It also allows the company to access capital on a flexible basis by allowing it to manage the timing and size of each capital call.
In every capital call AUDACIOUS will set a floor price (at its discretion) for the shares issued to LDA Capital ensuring the shares are issued at a price aligned and with the best interest of all shareholders.
The issue price of the shares under any capital call will be 90% of the average volume weighted average price in the 30-trading day period after the issue of the capital call by the company.
In addition, LDA Capital has agreed not to hold in excess of 19.9% of the common shares of AUDACIOUS.
As part of the agreement, LDA Capital will also receive warrants for up to 5.04 million new common shares of AUDACIOUS at an exercise price of CA$0.1485 per ordinary. The warrants will have a term of 3 years and 4 months from the date of signing the Agreement.
This funding instrument allows AUDACIOUS to deploy cash on an as-needed basis, rather than fully diluting existing shareholders at once for an amount of cash the company may not need given other financing options available to the company over the term of the agreement. The funds will support the company's execution on its ambitious growth strategy and will strengthen its balance sheet.
"With this new Agreement, we now have access to important additional funds that will enable us to accelerate our growth,” Terry Booth, AUDACIOUS CEO, said. “I am pleased we were able to work with LDA and devise a structure that provides us with more flexibility and less dilution than the original agreement did. AUDACIOUS is firing on all cylinders, and with additional fuel in the tank, we will be able to further our position in the various markets we are and intend to operate in."
Photo: Courtesy of Visual Stories || Micheile on Unsplash
