Quantum eMotion Secures $12 Million Financing for Growth
Quantum eMotion Secures $12 Million Financing
Quantum eMotion Corp. (“QeM” or the “Corporation”) (TSX.V: QNC) recently completed a significant brokered private placement aimed at bolstering its operations and research capabilities. The financing generated gross proceeds of $12 million, representing a vital step forward for the Corporation.
Details of the Financing
The financing consisted of the issuance of 8,000,000 units at $1.50 each. Each unit includes one common share and one common share purchase warrant. The warrant gives holders the option to purchase additional shares at a cost of $1.82 within a three-year timeframe, thus enticing investors with potential future growth.
Utilization of Proceeds
With this influx of capital, QeM plans to significantly accelerate its research and development (R&D) efforts. This involves expanding the R&D team and onboarding personnel crucial for ongoing commercialization initiatives. The remaining funds are earmarked for vital general working capital needs.
Investment Agent and Fees
The sole bookrunner for this offering was A.G.P. Canada Investments ULC, which also had A.G.P./Alliance Global Partners as the U.S. agent. The Agent received a cash fee equating to 6.0% of the total gross proceeds of the offering, alongside non-transferable warrants representing 4% of the total number of units issued. These Agent Warrants will enable the purchase of shares at $1.66 for 30 months, adding another layer of equity potential.
About Quantum eMotion
Founded with a mission to meet the growing demand for reliable security solutions, QeM has distinguished itself in the cybersecurity landscape. The Corporation is innovatively focused on providing both hardware and software security for connected devices. It is particularly noted for its patented Quantum Random Number Generator, which enhances protection through the unpredictable principles of quantum mechanics.
QeM aims to target high-value sectors such as Financial Services, Healthcare, Blockchain Applications, Cloud-Based IT Security, and even government communication systems. Their focus on both quantum cryptography and cybersecurity emphasizes the Corporation's commitment to providing next-generation solutions for emerging technological needs.
Future Outlook
As QeM proceeds with its plans, the immediate future looks promising, with the new capital allowing for strategic advancements in technology development and market reach. Their proactive approach to expanding their team demonstrates a readiness to seize new opportunities and adapt to the ever-changing cybersecurity landscape.
Frequently Asked Questions
What is the purpose of Quantum eMotion's recent financing?
The financing aims to enhance QeM's R&D efforts, expand its team, and support ongoing commercialization initiatives.
Who acted as the bookrunner for this financing?
A.G.P. Canada Investments ULC served as the sole bookrunner for the offering.
What are the key components of each unit issued?
Each unit consists of one common share and one common share purchase warrant, allowing the purchase of additional shares at a predetermined price.
How does QeM plan to use the funds raised?
The funds will be utilized for R&D acceleration, team expansion, and general working capital purposes.
What industries does QeM focus on?
QeM focuses on industries such as Financial Services, Healthcare, Cloud-Based IT Security, and more, providing cutting-edge cybersecurity solutions.
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