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FOBI AI Inc. Announces Proposed Variation to Private Placement

Mar 04, 2025 - financialpost.com
FOBI AI Inc. has announced a proposed variation to its private placement offering, seeking approval from the British Columbia Securities Commission (BCSC) for a Second Variation Order. This order aims to change the conversion price of the company's convertible debentures. The revised offering involves the sale of up to 1,495 unsecured convertible debentures, each with a principal amount of C$1,000, for total proceeds of up to C$1,495,000. The debentures will bear an interest rate of 10% per annum, payable semi-annually, and will mature two years from the closing date. The conversion price is set at C$0.06 per unit before the one-year anniversary of the closing date and C$0.10 per unit thereafter until maturity. The proceeds will be used to cover outstanding financial obligations and apply for a full revocation of a failure-to-file cease trade order.

The company anticipates that the proceeds will enable it to file its outstanding financial documents and pay related fees. FOBI AI, founded in 2017, is an AI and data intelligence company based in Vancouver, Canada, specializing in real-time applications for digital transformation. The company works with major organizations across various industries, including retail, insurance, and entertainment. Completion of the revised offering is contingent upon the BCSC granting the Second Variation Order and the execution of a subscription agreement by the subscriber.

Key takeaways:

  • FOBI AI Inc. is seeking a variation order from the British Columbia Securities Commission to change the conversion price of convertible debentures in its private placement offering.
  • The revised offering involves the sale of up to 1,495 unsecured convertible debentures, each with a principal amount of C$1,000, for aggregate proceeds of up to C$1,495,000.
  • The conversion price of the debentures will be C$0.06 per Unit before the one-year anniversary of the closing date and C$0.10 per Unit after the one-year anniversary and before the maturity date.
  • The proceeds from the offering will be used to file outstanding continuous disclosure documents, cover essential expenses, and apply for a full revocation of the failure-to-file cease trade order.
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