Vision Marine Technologies announces $3M private placement

Vision Marine Technologies has entered into definitive securities purchase agreements with several institutional and accredited investors for the sale of its preferred shares and warrants. Vision Marine sold an aggregate of 3,000 shares of its non-dividend bearing Series A Preferred Shares, with a stated value of $1,000 per share, and Warrants to purchase up to 2,857,142 of its common shares for aggregate gross proceeds of $3.0 million, before deducting placement agent fees and other offering expenses. Investors were also granted an option to purchase up to an additional 3,000 shares of Series A Preferred Shares and up to an additional 2,857,142 Warrants for a period of six months from the execution of the definitive securities purchase agreements. The shares of Series A Preferred Shares are initially convertible into an aggregate of 2,857,142 common shares of the Company at a conversion price of $1.05 per share, as may be adjusted, for a period of twelve months, at which time the Series A Preferred Shares becomes mandatorily convertible, subject to a potential price adjustment at maturity. The Warrants have an exercise price of $1.05 per share and will expire five years from the date of issuance. Simultaneously with the execution of the definitive securities purchase agreement, the Company has agreed to reduce the exercise price of 2,922,935 of its previously issued warrants from $4.05 and $4.25 to $1.05, which includes certain participating Investors, who have entered into warrant amendment agreements with the Company. Joseph Gunnar & Co., LLC is acting as the exclusive placement agent for the offering. The offering is expected to close on or about December 15, 2023, subject to satisfaction of customary closing conditions.