Business
Enterprise Group Announces Closing of Private Placement of Units
St. Albert, Alberta--(Newsfile Corp. - March 12, 2024) - Enterprise Group, Inc. (TSX: E) (OTCQB:...
About this update from Enterprise Group, Inc.
[{"type":"text","content":"Enterprise Group Announces Closing of Private Placement of UnitsSt. Albert, Alberta--(Newsfile Corp. - March 12, 2024) - Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) (the \"Company\" or \"Enterprise\"), a consolidator of services to the energy sector that is focused primarily on specialized equipment rental, announces that it has closed the offering of units (the \"Units\") previously announced on February 26, 2024 (the \"Offering\"). A total of 8,234,350 Units were issued at a price of $0.85 per Unit for gross proceeds of $7,000,000 pursuant to the Offering. The Offering was led by Acumen Capital Finance Partners Limited (the \"Underwriter\") and was comprised of a $5,000,000 bought deal private placement of Units and a $2,000,000 reasonable commercial efforts private placement of Units. Each Unit was comprised of one common share in the capital of the Company (a \"Common Share\") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a \"Warrant\"). Each Warrant is exercisable to acquire one additional Common Share (a \"Warrant Share\") for a period of 24 months at an exercise price of $0.95 per Warrant Share, subject to adjustment in certain events.The Units issued under the Offering were offered to purchasers pursuant to: (i) the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions (\"NI 45-106\") in an amount of 5,882,350 Units (the \"LIFE Units\") and (ii) other applicable exemptions from the prospectus requirements under NI 45-106 in an amount of 2,352,000 Units (the \"Hold Units\"). The LIFE Units are not subject to resale restrictions pursuant to applicable Canadian securities laws. The Hold Units are subject to the statutory hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws. In connection with the Offering the Underwriter received cash compensation equal to 6% of the gross proceeds of the Offering and broker warrants to acquire Hold Units equal to 6% of the number of Units sold pursuant to the Offering at a price of $0.89 per Hold Unit for a term of 24 months. The Company intends to use the net proceeds of the Offering to expand its fleet of rental equipment with an emphasis on low emission mobile power systems and for general corporate purposes. This news releas...