$45M public offering to help Kraken Robotics with expansion and acquisitions

Canada-headquartered marine technology player Kraken Robotics is set to receive a bought deal public offering of $45 million, with the net proceeds to be used for the company’s long-term strategy, including expansion and acquisitions, among others.

Kraken Robotics has amended its agreement with Cormark Securities Inc. to increase the size of its previously announced $25 million bought deal public offering to $45 million.

Pursuant to the upsized deal terms, Cormark Securities Inc., as lead underwriter, together with a syndicate of investment dealers has agreed to purchase 28,125,000 common shares at a price of $1.60 per share from the treasury of the company, and offer them to the public by way of short form prospectus for total gross proceeds of $45 million.

The company has granted the underwriters an option to purchase up to an additional 15% of the common shares of the offering on the same terms exercisable at any time up to 30 days following closing, for market stabilization purposes and to cover over-allotments, if any.

Kraken expects the net proceeds to be used to advance its long-term strategy, including investing in expanded facilities and increased manufacturing capacity, as well as providing flexibility to take advantage of opportunities for accretive acquisitions of complementary technologies and businesses.

The proceeds are also anticipated to be used for increasing the company’s attractiveness as a stable and reliable long-term supplier, strengthening the balance sheet to provide additional working capital to meet customer requirements in connection with potential additional large orders, as well as new program and contract opportunities, and for general corporate purposes.

Subject to regulatory approval, closing of the offering is expected on or about October 22.

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