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Pelican AI and Christie Capital Announce Launch of Brokered Financing

Jan 16, 2025 - financialpost.com
Pelican Canada Inc., operating as Pelican AI, and Christie Capital Corp. have announced a brokered private placement of subscription receipts to raise up to C$5 million. This financing is in anticipation of a business combination that will result in a reverse takeover of Christie by Pelican, forming a new entity named PelicanAI Corp. The transaction involves a three-cornered amalgamation and is subject to regulatory approvals, including listing on the TSX Venture Exchange. Canaccord Genuity Corp. is the lead agent for the offering, which may increase by 20% through an option. The proceeds will be used for working capital and corporate purposes.

The transaction will see the current directors and officers of Christie resign, with Pelican's nominees taking over. The new management team includes experienced professionals like Sasha Grujicic as CEO and Anand Phanse as CFO. The transaction's completion is contingent on several conditions, including shareholder and regulatory approvals. Pelican specializes in AI-driven solutions for payment processing and financial crime compliance, operating in over 55 countries. The offering is not available in the U.S., and the transaction's success is uncertain, with various risks and assumptions outlined in the forward-looking statements.

Key takeaways:

  • Pelican AI and Christie Capital have announced a brokered private placement of subscription receipts to raise up to C$5,000,000.
  • The transaction involves a reverse takeover of Christie by Pelican, resulting in a new entity named PelicanAI Corp.
  • The offering is managed by Canaccord Genuity Corp. as the sole lead manager and bookrunner, with a syndicate of agents including Research Capital Corporation.
  • The net proceeds from the offering will be used for working capital and general corporate purposes.
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