Water Ways Technologies Inc. (TSXV:WWT) (FRA:WWT) revealed that further to its recently announced private placement, the closing, subject to receipt of all regulatory approvals and final TSX Venture Exchange approval, of the financing of 746 units at a price of CA$1,000 ($779.27) per CD unit, for gross proceeds of CA$746,000.
Each CD unit is comprised of one unsecured convertible debenture with a principal amount of CA$1,000 and 2,857 common share purchase warrant with each CD warrant exercisable, upon payment of an additional CA$0.45, into one additional common share in the capital of the company until July 22, 2024. Pursuant to the financing the company will issue an aggregate 2.13 million CD warrants.
If the company does not repay the subscription price on or before July 22, 2024, the term will be extended by an additional 12 months and the company will be obligated to pay a one time penalty, in cash only, equal to 10% of any amounts of the subscription price that were outstanding and not repaid at the end of the term. The convertible debentures shall bear an annual interest rate of 8% payable quarterly in cash only.
The convertible debentures are also subject to conversion into common shares, at the option of the holder, at a conversion price of CA$0.35 per common share, provided that if, following November 23, 2022 the volume weighted average price ("VWAP") of the common shares for any 10 consecutive trading days equals or exceeds CA$0.525, the company may, upon providing written notice to the holders of the convertible debentures, force the conversion of the convertible debentures to the date that is 30 days following the date of such written notice.
Additionally, in the event that following November 23, 2022, the VWAP of the common shares for any 10 consecutive trading days equals or exceeds CA$0.675, the company may, upon providing written notice to the holders of the CD warrants, accelerate the expiry date of the CD warrants to the date that is 30 days following the date of such written notice.
In connection with the financing the company will issue to Exiteam Capital Partners Ltd.: an aggregate cash payment of CA$52,220, being an amount equal to 7% of the CD gross proceeds and issue 149,200 convertible debentures finder warrants, being an amount equal to 7% of the CD Units sold pursuant to the financing. Each CD finder warrant will be exercisable into one common share of the company until July 22, 2024, upon payment by the holder thereof of CA$0.35 per CD finder warrant.
About Water Ways Technologies.
WWT through its subsidiaries, is a global provider of Israeli-based agriculture technology, providing water irrigation solutions to agricultural producers. WWT competes in the global irrigation water systems market with a focus on developing solutions with commercial applications in the micro and precision irrigation segments of the overall market. WWT’s irrigation projects include vineyards, cotton fields, apple and orange orchards, blueberry, medical cannabis growers, fresh produce cooling rooms and more, in over fifteen countries.
Photo by Giorgio Trovato on Unsplash
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