Trading of Rochester-based Vuzix Corp. stock was halted Wednesday after the company priced a public offering of 3.5 million shares of common stock at $2 a share.
Vuzix, which trades on the Toronto Stock Exchange, saw its trading suspended by the Investment Industry Regulatory Organization of Canada at 8 a.m., pending clarification of financing terms.
Shares are priced at $4.55 on the TSX Venture Exchange.
The warrants have an exercise price of $2.25 per share, are exercisable immediately and expire five years from the date issued, Vuzix said Tuesday night.
In connection with the closing of the offering, the company said it expected its common stock to be suspended from trading on the Toronto Stock Exchange. It may be delisted afterward because of its stock being sold at a discount greater than 20 percent to the current market price, a statement said.
Aegis Capital Corp., based in New York City with an office in Rochester, is the sole book-running manager for the offering. New York City-based Chardan Capital Markets LLC is a financial adviser.
Vuzix expects to receive some $7 million from the offering before underwriting discounts, commissions and other expenses, company officials said.
The company plans to use the proceeds to commercialize its M100 Smart Glasses and VFX720 video head phone products, its waveguide technologies, officials said.
Proceeds also will be used to repay $2 million in debt and for working capital and general corporate purposes, officials said.
Representatives and underwriters have a 45-day option to purchase up to 525,000 additional common shares and 525,000 additional warrants to cover over-allotments, officials said.
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