It is in line with company plans to issue up to an aggregate of five million units of shares at a proposed subscription price of five cents per unit, with each unit comprising one common share and one-half of one common share purchase warrant in the capital of the company.
Midpoint operates a peer to peer foreign exchange and international payments platform through its wholly owned United Kingdom subsidiary, Midpoint & Transfer Ltd. The platform allows registered and authorized individuals or companies to conduct foreign exchange transactions for a transparent fee at the interbank midpoint or mid-market rate. The Company supports payments and exchanges in seventeen currencies.
Each whole warrant will entitle the holder thereof to purchase one additional common share of the company for a period of 24 months from the closing of the private placement at an exercise price of 20 cents per warrant common share.
That is provided that if, at any time after the date that is more than four months and one day following the closing of the private placement, the common shares trade on a stock exchange at a volume-weighted average trading price of 50 cents or greater per common share for a period of 20 consecutive trading days, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such case, the warrants will expire on the 30th day after the date on which such notice is given by the company.
The common shares and the warrants comprising the units issued in connection with the completion of the private placement will be subject to a hold period of four months and one day from the date of closing.
The proceeds of the private placement will be used for the company's general corporate and working capital purposes.
Midpoint shares closed up 7.7% at C$0.07.