Canadian vanadium redox flow batteries maker CellCube Energy Storage Systems Inc is looking to raise about CAD 4 million (USD 3.1m/EUR 2.7m) gross from a fully-subscribed, non-brokered private placement.
The funds will be used to increase ongoing sales and for the continued commercialisation of the company’s vanadium flow battery storage systems, CEO Mike Neylan said in a statement.
The company is issuing 26.67 million units at a price of CAD 0.15 apiece, each comprised of one common share and one-half of one common share purchase warrant. A full purchase warrant is exercisable into one common share of the company at a price of USD 0.30 for a period of 36 months from closing. A further CAD 1 million can be raised through an over-allotment provision.
The offering is expected to close on or about October 31, 2018.
As previously announced, CellCube is planning a spin-out of its fully-owned Bisoni Mackay and Bisoni Rio vanadium assets in Nevada into a new firm called V23 Resource Corp. The common shares issued in the private placement will also be eligible to receive the share dividend to be distributed upon the spin-out of these assets. The established record date for the spin-out is November 30, 2018.
