Lucosky Brookman LLP Acts as Counsel to Joseph Gunnar on Republic Technologies’ $10 Million First Drawdown of Convertible Note Facility
Republic Technologies Inc. (CSE: DOCT) (FSE: 7FM0) (WKN: A41AYF) (OTCQB: DOCKF), a publicly traded technology company integrating Ethereum infrastructure into the global economy, announced the successful closing of the first drawdown of its previously announced secured convertible note facility of up to US$100 million. The first drawdown generated gross proceeds of US$10 million, less the original issue discount.
The First Drawdown was completed on a non-brokered private placement basis. Upon closing, 10,000 convertible notes, each with a principal amount of US$1,000, were issued. The notes are secured by a custody account holding a fixed ETH target equal to US$12 million, which will remain in place for the duration of the facility. Republic intends to allocate approximately 90% of the net proceeds from the First Drawdown toward the acquisition of ETH to support its validator infrastructure and attestation services, with the balance used for general working capital purposes.
In connection with the First Drawdown, the Company issued 27,904,000 common share purchase warrants, exercisable at C$0.50 per share for a period of five years. If fully exercised, the warrants would provide Republic with approximately an additional US$10 million in financing. No insiders participated in the First Drawdown, and no new control person was created. Shareholder approvals, as required by applicable CSE policy, were obtained prior to closing.
Joseph Gunnar & Co., LLC acted as placement agent for the First Drawdown.
Lucosky Brookman LLP acted as counsel to Joseph Gunnar & Co., LLC.