ThreeD Capital upsizes private placement to raise up to $696,000

TORONTO - ThreeD Capital Inc. (CSE:IDK / OTCQX:IDKFF), a micro-cap venture capital firm with a market capitalization of $4.03 million, has increased the size of its previously announced non-brokered private placement, now planning to issue up to 11.6 million units priced at $0.06 each, the company announced Thursday. According to InvestingPro data, the company currently trades at a low Price/Book multiple of 0.14x.

The upsized offering aims to raise gross proceeds of up to $696,000, with each unit consisting of one common share and one common share purchase warrant. Each warrant allows the holder to acquire one additional common share at $0.15 for a period of 60 months. The company maintains strong liquidity with a current ratio of 15.23, indicating substantial coverage of short-term obligations. Want deeper insights? InvestingPro subscribers have access to over 30 additional financial metrics and analysis tools.

According to the company’s statement, directors of ThreeD Capital intend to purchase all 11.6 million units in the offering. This insider participation constitutes a related party transaction under Multilateral Instrument 61-101, though the company is exempt from valuation and minority shareholder approval requirements as the fair market value of insiders’ participation does not exceed 25% of ThreeD’s market capitalization.

No commission or finder’s fees are expected to be paid as part of the transaction. All securities issued will be subject to a four-month and one-day hold period.

The Toronto-based firm indicated that proceeds will be used for general working capital and investment purchases. The private placement remains subject to approval from the Canadian Securities Exchange.

ThreeD Capital describes itself as a venture capital firm that invests in junior resources and disruptive technologies sectors, often acting as a lead investor while providing advisory services to early-stage companies. The stock has faced significant challenges, with a year-to-date decline of 59.46% and negative earnings of $7.41 million in the last twelve months. Discover more investment opportunities with InvestingPro’s curated portfolio ideas and comprehensive market analysis tools.

The announcement was made in a press release issued by the company.

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