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TORONTO/LOS ANGELES - QYOU Media Inc. (TSXV:QYOU) (OTCQB:QYOUF), currently trading near its 52-week low and showing potential upside according to InvestingPro Fair Value analysis, announced Monday a non-brokered private placement offering of up to 25 million units priced at $0.03 per unit to raise up to $750,000 in gross proceeds.
Each unit consists of one common share and three-quarters of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at $0.06 for 24 months from the closing date.
According to the press release, the company will use the net proceeds to repay outstanding loans, pay amounts due from the acquisition of its subsidiary Chatterbox Technologies Limited, and for working capital and general corporate purposes. This funding comes at a crucial time, as InvestingPro data shows the company’s current ratio at 0.88, indicating short-term obligations exceed liquid assets. While revenue grew by ~14% in the last twelve months, the company faces challenges with cash burn and weak gross profit margins of 11%.
The offering is expected to close around September 5, 2025, subject to conditions including approval from the TSX Venture Exchange. The common shares will be subject to a four-month plus one day hold period following the closing.
QYOU Media operates in India and the United States, producing and distributing content created by social media influencers and digital content creators. The company’s Indian subsidiary, Chtrbox, connects brands with social media influencers, while its U.S. operations focus on creating content for film studios, game publishers, and brands. Despite current challenges, analysts anticipate sales growth for the current year. InvestingPro subscribers can access 9 additional key insights about QYOU’s financial health and growth prospects.
The units have not been registered under the U.S. Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.
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