Netcapital Confirms Immediate Warrant Exercise for Growth

Netcapital Inc. Announces Warrant Exercise to Boost Capital

Netcapital Inc. is making significant strides in the digital capital markets by recently announcing a definitive agreement for the immediate exercise of certain outstanding warrants. This development is not only a crucial financial mechanism for the company but also promises to enhance its growth trajectory. With a focus on expanding their operations, the company is securing its future by making strategic financial moves.

Details of the Warrant Exercise

The company is set to exercise warrants for up to 270,861 shares of common stock, which were initially issued in late 2023 and early 2024. The exercise price reflects a significant reduction, going from $10.85 to $1.80 per share, which positions them well within the current market. Overall, this move is expected to generate gross proceeds of approximately $487,549, which will be integral in supporting its ongoing projects and operational costs.

Role of the Placement Agent

H.C. Wainwright & Co. has taken on the role of exclusive placement agent for this offering. Their expertise is invaluable, ensuring a smooth transaction process and managing the financial aspects associated with the exercise of the warrants.

New Warrants Offering

In addition to the immediate exercise of the existing warrants, Netcapital will also be issuing new Series A-5 and Series A-6 warrants. These new warrants are set to offer more opportunities for investors and will enable the company to increase its equity base. Specifically, the Series A-5 warrants will allow the purchase of 361,148 shares at an exercise price of $2.07, while the Series A-6 warrants will enable the purchase of 180,574 shares under the same pricing structure.

Timeline for Closure

The expected closing date for this offering is approaching, with transactions slated for on or around January 13, 2025. This timeline reflects the company's ability to adapt to the fast-paced nature of the financial markets and meet their strategic goals.

Utilization of Proceeds

With the funds generated from the exercise of the warrants, Netcapital plans to channel the net proceeds towards general working capital purposes. This will enhance their ability to innovate and sustain operations within the fintech space. The focus on robust capital utilization strategies is essential for the company's long-term objectives.

Compliance and Regulatory Considerations

The newly issued warrants have been structured in compliance with the regulations set forth in the Securities Act of 1933. It is important to note that these securities have not been registered and thus cannot be sold or offered within the United States unless they are registered, or an applicable exemption from registration is available. The commitment to file a registration statement with the SEC demonstrates Netcapital’s dedication to adhering to regulatory requirements.

Commitment to Transparency

Netcapital emphasizes a transparent approach to its operational and financial undertakings. This transparency fosters trust with investors and partners alike, ensuring that all stakeholders are well-informed of the company's actions and strategies.

About Netcapital Inc.

Netcapital Inc. is a pioneering fintech company that has developed a scalable technology platform, enabling private businesses to raise capital in a more accessible online environment. Through its innovative strategies, Netcapital creates investment opportunities for both investors and private companies, enhancing participation in private equity investment.

Services and Offerings

The company's consulting group, Netcapital Advisors, plays a crucial role by providing marketing and strategic advice. This arm of the company takes equity positions in select businesses, further driving growth and value creation. Additionally, their funding portal is registered with the U.S. Securities and Exchange Commission, illustrating their compliance with industry standards.

Frequently Asked Questions

What is the purpose of the warrant exercise?

The warrant exercise is primarily aimed at raising capital to support Netcapital's operational needs and strategic initiatives.

Who is the placement agent for this offering?

H.C. Wainwright & Co. is acting as the exclusive placement agent for Netcapital's warrant exercise offering.

What will the proceeds be used for?

The proceeds from the warrant exercise will be allocated for general working capital purposes, helping the company to further enhance its operations.

When is the expected closing date for the offering?

The expected closing date for the offering is on or around January 13, 2025.

Are the new warrants registered?

No, the new warrants were offered in a private placement and have not been registered under the Securities Act of 1933.

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