QYOU Media completes $750,000 private placement offering

LOS ANGELES/TORONTO - QYOU Media Inc. (TSXV:QYOU) (OTCQB:QYOUF), which has seen a notable 17% return over the past week according to InvestingPro data, has completed its previously announced non-brokered private placement, raising $750,000 through the issuance of 25 million units priced at $0.03 each, according to a press release statement.

Each unit consists of one common share and three-quarters of a common share purchase warrant. Each whole warrant allows the holder to purchase one common share at $0.06 until September 12, 2027.

The company plans to use the proceeds for partial repayment of outstanding loans, partial payment of amounts due from the acquisition of subsidiary Chatterbox Technologies Limited, and for working capital and general corporate purposes. This funding comes at a crucial time, as InvestingPro analysis shows the company has been quickly burning through cash, with a concerning current ratio of 0.86.

QYOU Media paid approximately $30,552 in finder’s fees and issued finder’s warrants to acquire up to 991,711 additional units to certain persons who assisted with the offering.

Company directors, officers and insiders participated in the offering, subscribing for 3,334,000 units. This participation constitutes a related party transaction under securities regulations but is exempt from formal valuation and minority approval requirements as the value does not exceed 25% of the company’s market capitalization.

All securities issued in the offering will be subject to a four-month plus one day hold period under Canadian securities laws. The offering remains subject to final approval from the TSX Venture Exchange.

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 subsidiaries include Chtrbox, an influencer marketing platform in India. Despite challenging market conditions and a modest gross profit margin of 6.55%, the company has achieved revenue growth of 13.5% over the last twelve months. Get deeper insights into QYOU’s financial health and access 10+ additional exclusive ProTips with InvestingPro.

In other recent news, QYOU Media announced a non-brokered private placement offering aimed at raising up to $750,000 in gross proceeds. The offering will consist of up to 25 million units, each priced at $0.03. Each unit includes one common share and three-quarters of one common share purchase warrant. Investors holding a whole warrant will have the option to purchase an additional common share at $0.06 within 24 months from the closing date. This development is part of the company’s ongoing efforts to secure additional funding. There are no updates on earnings or mergers at this time. No analyst upgrades or downgrades have been reported in connection with this announcement.

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