/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
CALGARY, AB, Aug. 12, 2020 /CNW/ - 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.
SOURCE Blackline Safety Corp.