Redwood AI closes $3.5M private placement with U.S. investor

Redwood AI Corp. (CSE: AIRX)(OTCQB: RDWCF)(Frankfurt: Y0N) has closed a private placement of up to 1,663,000 special warrants with a single U.S. institutional investor, raising gross proceeds of up to $3.5 million.

The special warrants were priced at $2.11 each and will automatically convert into units consisting of one common share and one warrant, without additional payment. Each warrant entitles the holder to purchase one additional common share at $2.48 for a period of 60 months following closing.

If the company does not file a qualifying prospectus supplement within 90 days of closing, each special warrant will convert into 1.10 units instead of one unit. The special warrants are otherwise set to be exercised on the earlier of four months and one day after closing, or the date the prospectus supplement is filed.

Maxim Group LLC served as the exclusive placement agent for the offering. The company stated it intends to use net proceeds for working capital and general corporate purposes.

Redwood AI has filed a preliminary short form base shelf prospectus with Canadian securities regulatory authorities and said it will work to file a final prospectus supplement to qualify the distribution of units issuable upon exercise of the special warrants. The securities are subject to applicable Canadian and U.S. resale restrictions and have not been registered under the U.S. Securities Act of 1933.

Redwood AI is a Vancouver-based company that develops artificial intelligence software and analytics tools for chemical and pharmaceutical research and development.

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