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FOBI AI Inc. Announces Proposed Private Placement and BCSC Order

Dec 27, 2024 - financialpost.com
FOBI AI Inc., a Vancouver-based AI and data intelligence company, has announced a proposed private placement to raise US$2,244,576 by issuing 56,114,400 units at US$0.04 per unit. Each unit includes one common share and one warrant, exercisable at US$0.06 per share for two years. The company is seeking a partial revocation of a cease trade order from the British Columbia Securities Commission to complete this offering. The proceeds will be used to address outstanding financial obligations, including accounting, legal, and payroll expenses, and to apply for a full revocation of the cease trade order.

The offering is contingent upon regulatory approvals and the execution of a subscription agreement. Upon completion, the subscriber will hold 19.99% of FOBI's common shares. FOBI plans to file its annual and interim financial statements shortly after the offering's closure. The company aims to leverage the funds to enhance its operations and eventually lift the cease trade order. FOBI is recognized for its work in AI and data intelligence across various industries, including retail, insurance, and entertainment.

Key takeaways:

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  • FOBI AI Inc. is seeking a partial revocation order from the British Columbia Securities Commission to complete a private placement offering of 56,114,400 units at US$0.04 per unit, aiming to raise US$2,244,576.
  • The proceeds from the offering will be used to cover outstanding expenses, file continuous disclosure documents, and apply for a full revocation of the cease trade order.
  • The private placement will result in the subscriber holding 19.99% of the company's common shares, with restrictions on exercising warrants to prevent exceeding 20% ownership.
  • FOBI AI Inc. plans to file its annual and interim financial statements within specified timeframes following the closing of the proposed offering.
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