Fobi AI's Strategic Move: Proposed Placement and BCSC Response

Fobi AI Inc. Targets Growth with Strategic Private Placement

Fobi AI Inc. (NASDAQ: FOBI, Other OTC: FOBIF), a prominent player in the AI and data intelligence sector, has set its sights on propelling its business forward through a new financial strategy. The company has submitted an application to the British Columbia Securities Commission (BCSC) seeking a Partial Revocation Order concerning the ongoing failure-to-file cease trade order that affects its operations. This proactive move signifies Fobi's commitment to addressing regulatory challenges while simultaneously pursuing exciting growth avenues.

Understanding the Proposed Private Placement

The focal point of Fobi's current strategy is a proposed private placement aimed at raising approximately US$2,244,576. This offering involves 56,114,400 units, each priced at US$0.04. Each unit comprises one common share and one warrant, which can be exercised at US$0.06 over the next two years. This structure not only provides essential funding but also strategically aligns with Fobi's operational directives.

Use of Proceeds

Fobi has clearly outlined its intentions for the funds raised through this placement. Each dollar obtained will play a vital role in alleviating outstanding debts and covering essential operational costs. The proposed funding distribution is designed to stabilize the Company while meeting regulatory requirements and enhancing overall business health.

Financial Breakdown of Proposed Offering

To give clarity on the financial implications, here’s a summarized allocation of the proposed funding:

• Accounting, audit, and legal fees approximate C$685,205.
• Regulatory and late filing fees forecasted at C$109,101.
• Payroll, including past due amounts of C$646,369.
• Payments to the US Internal Revenue Service nearing C$143,860.
• BC employer taxes amounting to C$511,171.
• Additional essential operating expenses are estimated at C$118,372.
• The total overview positions the funding requirement at approximately C$3,229,047.

The Subscriber's Anticipated Stake

Upon successful closure of the offering, the Subscriber is positioned to own about 19.99% of Fobi's total common shares outstanding. This potential shift highlights the important balance Fobi aims to maintain concerning ownership stakes to ensure operational continuity while encouraging investor confidence.

Regulatory Conditions for Completion

Completion of the Proposed Offering hinges on obtaining the necessary regulatory approvals, including the BCSC's Partial Revocation Order and the TSX Venture Exchange’s endorsement. The company is also prioritizing the execution of a subscription agreement, which is a critical aspect of this funding strategy.

Future Plans Following the Placement

In tandem with this offering, Fobi is committed to filing overdue annual and interim financial statements, which are necessary steps toward regaining full regulatory compliance. The timeline for these filings is pivotal, with annual statements expected to be submitted shortly after the offering's closing.

About Fobi AI Inc.

Founded in 2017, Fobi AI Inc. has rapidly evolved into a leader in providing AI-driven data intelligence solutions. The company specializes in equipping businesses with the tools to enhance customer interactions using actionable data insights. By refocusing its operations, Fobi aims to drive digital sustainability and minimize environmental footprints across its client sectors.

Partnerships and Industry Presence

Fobi is proudly associated with a diverse range of global industries encompassing retail, entertainment, insurance, and gaming, demonstrating its adaptable and extensive reach. By being the largest data aggregator in Canada's hospitality sector, Fobi has positioned itself as an innovative technology leader, fostering transformative relationships with major organizations.

Frequently Asked Questions

What is the purpose of Fobi AI's proposed private placement?

The proposed private placement aims to raise funds to address outstanding debts, cover essential operational costs, and comply with regulatory requirements.

How much is Fobi AI looking to raise through this offer?

Fobi AI intends to raise approximately US$2,244,576 through the issuance of 56,114,400 units priced at US$0.04 each.

What does the funding allocation look like?

Funds will be allocated to cover accounting/legal fees, payroll, regulatory fees, and essential operational expenses amounting to approximately C$3,229,047.

What percentage of shares will the Subscriber hold after the placement?

Upon closing the placement, the Subscriber will have an anticipated 19.99% ownership of Fobi's total common shares.

What approvals are needed for Fobi AI to proceed with the offering?

Fobi AI needs regulatory approval from the BCSC and the TSX Venture Exchange, along with the execution of a subscription agreement.

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