Location technology and services provider Cell-Loc Inc., which has seen a variety of cash troubles in the past few months, announced a plan to raise about $6.5 million in a public offering-two-thirds of which would be purchased by company executives-but later the same day nearly doubled the amount to $13.2 million.
Under the revised bought-deal financing, the company will offer 5.4 million units in the Toronto Stock Exchange to a syndicate of underwriters led by Research Capital Corp. Cell-Loc executives will buy up to $6.48 million of the offering.
According to a release from the company, the financing was amended due to “high market demand.”
The move comes after a variety of worrying releases from the company. Last month, the company announced it would restructure its business plan, streamline its operations and eliminate about one-third-47 positions-of its work force.
Prior to that, Cell-Loc’s executive vice president and chief operating officer, Lew Turnquist, resigned to pursue other interests, according to a release from the company. Frank King, a member of the company’s board of directors, also resigned.
And-even more surprising-Cell-Loc’s president and chief executive officer, Michel Fattouche, announced he would provide up to $13.2 million in funding to keep his company afloat.
Cell-Loc is working to set up an independent network-based wireless location services system in various markets in the United States and Canada.
The company’s stock was trading at $2.58 today, down from a 52-week high of about $53.
