A2Z Smart Technologies Closes Previously Announced US$4.7 Million Registered Direct Offerings, Inclusive of $1.5 Million Raised in December 2023
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The completion of A2Z Smart Technologies Corp.'s registered direct offerings in January and the preceding December, collectively raising approximately $6.2 million, is a strategic move aimed at bolstering the company's working capital and supporting general corporate purposes. The offering's structure, involving common shares and warrants, is a common method for raising capital without incurring debt, thus avoiding immediate interest expenses and potential dilution only occurs if and when the warrants are exercised.
By setting the exercise price of the warrants at a premium to the offering price, the company is potentially signaling confidence in its future stock performance, anticipating that the stock price will exceed the exercise price within the validity period of the warrants. This could be an attractive incentive for investors who may expect the company's value to increase over time. However, the issuance of warrants also implies a future dilution of equity if they are exercised, which current shareholders must consider when evaluating the impact on their investment.
The absence of a placement agent in the transaction suggests A2Z has managed to directly attract investors, thus saving on fees that would typically be paid to intermediaries. Nonetheless, the payment of finders fees to non-US residents indicates the company still incurred costs to facilitate the deal. The use of Section 4(a)(2) for the issuance of Finder Warrants indicates that these transactions were private placements, exempt from registration with the SEC and targeted at a select group of sophisticated investors.
A2Z Smart Technologies Corp.'s recent capital raise through a registered direct offering can be seen as a proactive approach to ensure liquidity and fund ongoing operations or potential expansion. From a market perspective, the successful closing of such an offering could be interpreted as a positive signal of investor confidence in the company's prospects, particularly given the absence of Canadian or resident Canadian participants, which highlights the international appeal and reach of A2Z's business model.
It is crucial to monitor the market's reaction to such offerings, as they can influence the company's stock price both positively and negatively. Positive reception might come from the market's interpretation of the company's growth potential, while negative impacts could result from concerns over dilution or the pricing of the offering relative to current market prices. The issuance of warrants at an exercise price higher than the offering price could also suggest management's optimism about future growth, which might be a factor in investor sentiment.
From a legal standpoint, the issuance of common shares and warrants by A2Z Smart Technologies Corp. without the use of a placement agent and the payment of finders fees to certain non-US residents, are transactions that must comply with specific securities regulations. The reliance on Section 4(a)(2) of the Securities Act of 1933 for the Finder Warrants is indicative of a private placement approach, which is typically less burdensome than a public offering in terms of disclosure and regulatory requirements.
Investors should note that the company has filed a prospectus with the SEC, providing transparency and regulatory compliance for the issuance. This filing ensures that all material information regarding the offering is publicly available, which is crucial for investors making informed decisions. The detail that no Canadians or residents of Canada participated in the offering may reflect the company's strategic targeting of investors or regulatory considerations related to the offering's structure.
TEL AVIV, ISRAEL / ACCESSWIRE / January 16, 2024 / A2Z Smart Technologies Corp. ("A2Z" or the "Company") (TSXV:AZ)(NASDAQ:AZ), a global leader in innovative technology solutions, today announced that it closed its previously announced (See press release of January 4, 2024) US
A2Z anticipates that the net proceeds from the Offering, after deducting Offering expenses, will be used for working capital and general corporate purposes. No placement agent was used or participated in the Offering. The Company has in connection with the Offering paid certain non-US residents finders fees in the aggregate amount of US
The Company has filed a prospectus with the Securities and Exchange Commission relating to the common shares and warrants issued to the investor, which can be viewed at www.sec.gov and on the Company's SEDAR profile at www.sedar.com. No Canadians or residents of Canada participated in the Offering.
About A2Z Smart Technologies Corp.
A2Z Smart Technologies Corp. creates innovative solutions for complex challenges. A2Z's flagship product is the world's first proven-in-use mobile self-checkout shopping cart. With its user-friendly smart algorithm, touch screen, and computer-vision system, Cust2Mate streamlines the retail shopping experience by scanning purchased products and enabling in-cart payment so that customers can simply "pick & go", and bypass long cashier checkout lines. This results in a more efficient shopping experience for customers, less unused shelf-space and manpower requirements, and advanced command and control capabilities for store managers.
Forward Looking Statements
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These statements include, without limitation, statements related to our ability to close the registered direct offering and the use of proceeds. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the market and other conditions, the impact of economic, competitive and other factors affecting the Company and its operations, and other factors detailed in reports filed by the Company with the Securities and Exchange Commission.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the Company and has neither approved nor disapproved the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information, which involves known and unknown risks, uncertainties and other factors that may cause actual events to differ materially from current expectation. Important factors - including the availability of funds, the results of financing efforts and the risks relating to our business - that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time on SEDAR (see www.sedar.com) and with the Securities and Exchange Commission (see www.sec.gov). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This press release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein.
Investor Contact:
John Gildea, SVP of Corporate Communications and Investor Relations
john@a2zas.com
SOURCE: A2Z Smart Technologies Corp.
View the original press release on accesswire.com
FAQ
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Did the company involve Canadian residents in the offering?
