Blackline Announces $20.4 Million Bought Deal Private Placement
August 13, 2020
Calgary, Canada — August 12, 2020 — Blackline Safety Corp. ("Blackline" or the "Company") (TSXV: BLN) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. and PI Financial Corp., as co-lead underwriters, on their own behalf and on behalf of a syndicate of underwriters (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on an underwritten private placement basis, 3,400,000 common shares of the Company ("Common Shares") at an issue price of $6.00 per Common Share for aggregate gross proceeds of $20,400,000 (the "Offering"). In connection with Offering, the Company has granted the Underwriters an option, exercisable in whole or in part at any time prior to the closing date of the Offering, to increase the Offering by up to an additional 850,000 Common Shares for additional gross proceeds of up to $5,100,000. The Company has agreed to pay a cash commission of 6.0% of the gross proceeds of the Offering to the Underwriters.
"While Blackline is debt free and well capitalized with over $22M in cash and equivalents as of the end of our second quarter, this additional injection of funding will be a catalyst to accelerate our future growth," said Cody Slater, CEO of Blackline Safety. "These funds will enable us to increase the speed at which we innovate and accelerate our time-to-market for new products and services, further separating ourselves from competitors as we bring connected safety and connected worker technologies to global industry."
The Offering is expected to close on or about September 2nd, 2020 and is subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. The Company intends to use the net proceeds of the Offering to undertake a series of programs that it believes have the potential to significantly impact its growth over the next three years, including:
- Accelerated investment in two new core products
- Accelerated investment in its cloud-based platform to dramatically enhance its ability to absorb data
- Expand its Blackline Vision Data Science offering and increase investment into its promotion
- Build new sales channels targeting new core vertical markets
- Explore opportunities for accretive growth through acquisition
- Other general corporate purposes
The Common Shares to be issued under the Offering will have a hold period of four months and one day from closing.
About Blackline Safety: Blackline Safety is a global connected safety leader that helps to ensure every worker gets their job done and returns home safe each day. Blackline provides wearable safety technology, personal and area gas monitoring, cloud-connected software and data analytics to meet demanding safety challenges and increase productivity of organizations in more than 100 countries. Blackline Safety wearables provide a lifeline to tens of thousands of men and women, having reported over 120 billion data-points and initiated over five million emergency responses. Armed with cellular and satellite connectivity, we ensure that help is never too far away. For more information, visit BlacklineSafety.com and connect with us on Facebook, Twitter, LinkedIn and Instagram.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains certain forward–looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the anticipated closing date of the Offering and the anticipated use of the net proceeds of the Offering. Although Blackline believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Blackline can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Offering could be delayed if Blackline is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to closing is not satisfied. Accordingly, there is a risk that the Offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the Offering by Blackline might change if the board of directors of Blackline determines that it would be in the best interests of Blackline to deploy the proceeds for some other purpose. The forward looking statements contained in this press release are made as of the date hereof and Blackline undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities in any jurisdiction. The common shares of Blackline will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States, or to a U.S. person, absent registration or applicable exemption therefrom.