Liberty Defense Secure $8M in Private Placement Financing

Liberty Defense Concludes Successful Financial Placement

Liberty Defense Holdings Ltd., known for its cutting-edge technology aimed at detecting concealed threats, has successfully executed a non-brokered private placement totaling $8 million. This significant financial maneuver was crucial to bolster the company’s position in the rapidly evolving security sector.

Understanding Liberty's Growth Strategy

Following the recent closure of this financing round, Liberty is set to utilize the funds for fulfilling existing orders and enhancing its current customer relationships. As the demand for robust security solutions escalates, this financial influx places Liberty in a prime position to capitalize on emerging market opportunities in 2025 and beyond.

Investor Confidence

CEO Bill Frain expressed his enthusiasm regarding the strong interest from both existing and potential investors. The robust demand signals a positive shift in market perception, showcasing the company's capability to adapt and grow in a competitive landscape.

Innovative Technology at the Core

Liberty is renowned for its AI-driven HEXWAVE technology, developed to offer modular, scalable solutions for detecting both metallic and non-metallic threats. This technology, combined with the company's license from the Massachusetts Institute of Technology, exemplifies Liberty's commitment to premier safety and security in high-traffic venues.

The Role of HEXWAVE

With the completion of the private placement, Liberty plans to enhance the commercialization of HEXWAVE across various environments, including airports, stadiums, and schools. The proceeds will also support the final stages of the Transportation Security Agency funded High Definition-AIT program, further embedding Liberty's solutions into critical infrastructures.

Details of the Fundraising Transaction

The company issued a substantial number of units at a rate of $0.32 per unit, accounting for a total of 25 million units. Each unit comprises one common share and half a warrant, proposing a potential additional investment opportunity for holders. As part of the investment structure, the warrants could be exercised at $0.55 each within a two-year period, opening further avenues for participating in the company's growth.

Provisions for Accelerated Expiry

The warrants have specific terms concerning their expiry. If the company’s share price exceeds $0.70 for five consecutive trading days, Liberty has the authority to accelerate the expiry of these warrants. This feature is designed to entice investment participation while ensuring management maintains strategic control over its financing instruments.

Corporate Relations and Finder’s Fees

In acknowledgment of the efforts of financial facilitators like Canaccord Genuity Corp., Liberty allocated a finder's fee totaling approximately $400,339.52. In addition, the company issued over a million finder's warrants to incentivize these key partners who played an instrumental role in introducing new investors to the offering.

Debt Management and Financial Health

Concurrently with this offering, Liberty has agreed to address approximately $500,000 in existing debt through the issuance of additional units. This strategic maneuver not only streamlines Liberty's financial obligations but also reinforces its asset base, providing a clearer path for future growth and sustainability.

Future Outlook for Liberty Defense

As Liberty Defense looks ahead, the company is committed to addressing the increasing challenges around public safety and security. By leveraging technological innovation and strategic funding, Liberty is well-positioned to enhance societal protection against concealed threats. Investors can look forward to observing how the successful execution of this placement will influence Liberty’s trajectory in the competitive security solutions market.

Frequently Asked Questions

What was the amount raised in the private placement by Liberty Defense?

Liberty Defense raised a total of $8 million through their recent private placement.

What technology does Liberty Defense focus on?

The company specializes in advanced detection solutions for concealed weapons, particularly through its HEXWAVE technology.

What will the proceeds from the offering be used for?

The funds will be allocated to fulfilling existing orders, scaling operations, and supporting the deployment of Liberty's security technologies.

Who were the financial facilitators for the private placement?

Key financial partners included companies like Canaccord Genuity Corp. and Research Capital Corporation, among others.

What are the potential benefits for warrant holders?

Warrant holders can purchase shares at a price of $0.55, with the possibility of benefits if the company’s stock performs well in the market.

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