AirIQ Closes Private Placement
AirIQ Inc., a fleet telematics company, announced on December 17 that it successfully closed an offering of 13,347,267 units for gross proceeds of $6,006,270 by way of private placement. The private placement was completed through National Bank Financial Inc. and GMP Securities Ltd., with National Bank Financial Inc. acting as the lead agent.
"Given the many strategic opportunities ahead of us, we determined that to further strengthen our balance sheet going into 2004 was a wise step at this time," explained Donald Simmonds, president and CEO of AirIQ. "The ability to expedite entry into the consumer market and take advantage of possible accretive growth opportunities adds to the steady growth plan in our commercial fleet business."
As previously announced on December 12, 2003, the private placement is structured as an issuance of units at a price of $0.45 per unit. Each unit is comprised of one common share in the capital of AirIQ and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of $0.60 until December 17, 2005. The common shares and warrants will be subject to a four-month hold period.
AirIQ intends to use the proceeds to fund initiatives such as marketing, production expansion into the Consumer Telematics market, and for working capital and other corporate purposes.