Republic Technologies Inc. (CSE: DOCT) (FSE: 7FM0) (OTCQB: DOCKF), a publicly traded technology company integrating Ethereum infrastructure into the global economy, announced the successful closing of the first drawdown under its previously announced secured convertible note facility providing for up to US$100 million in aggregate principal amount. The first drawdown resulted in gross proceeds of US$10 million, less the original issue discount.
The financing was completed on a non-brokered private placement basis. In connection with the first drawdown, the Company issued 10,000 secured convertible notes, each with a principal amount of US$1,000. 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.
In connection with the first drawdown, the Company also 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 the Company with approximately an additional US$10 million in financing.
Approximately 90% of the net proceeds from the first drawdown are expected to be used for the acquisition of ETH to support the Company’s validator infrastructure and attestation services, with the balance allocated to general working capital purposes.
Joseph Gunnar & Co., LLC acted as placement agent for the transaction. Lucosky Brookman LLP acted as counsel to Joseph Gunnar & Co., LLC in connection with the financing.
