$10 million Financing at $0.275 per unit
TORONTO, February 22, 2022 – ARHT Media Inc. (“ARHT Media” or the “Company”) [TSXV:ART] [OTCQB: ARHTF], the global leader in the development, production and distribution of high-quality, low latency hologram and digital content, today announced it has closed a private placement with a group of strategic investors, led by Samacha Capital Inc., an investment company controlled by Jonathan Pollack, pursuant to which the Company has issued $10 million of units of the Company (“Units”) at a price of $0.275 per Unit in a non-brokered private placement (the “Offering”). In connection with the closing of the Offering, Jonathan Pollack, the former Chief Financial Officer of technology companies AcuityAds and Kaboose has joined the board of directors of ARHT Media as Vice-Chair. Deborah Beatty, currently the VP Corporate Strategy at PointClickCare and the former Head of Strategy for the Middle East and Africa for Apple, has also joined the board of directors as an additional independent director.
The Company will use the net proceeds of the Offering:
- to fund the accelerated roll out of its HoloPresenceTM technology, including the Company’s global partnership with WeWork;
- to broaden its addressable market through the introduction of new products;
- to substantially increase investment in the Company’s sales team and marketing spend; and
- for general working capital purposes.
“This sizeable investment, being completed at a premium to the current share price, represents validation of the significant underlying value of our technology, product offering and growth initiatives,” said Larry O’Reilly, Chief Executive Officer of ARHT Media. “This infusion of growth capital will allow us to expedite the implementation of our existing business plan, particularly with an accelerated rollout of expanded locations including our WeWork partnership. In addition, this capital will allow ARHT Media to enter additional markets with new and innovative products that significantly broaden the use case and accessibility of our core technology. We are particularly pleased to add Jonathan Pollack and Deborah Beatty to our Board as both have substantial business, financial and strategic experience, primarily in the technology sector, to assist us in accelerating our growth.”
“I am very excited to be joining the Board of ARHT Media and working closely with Larry and his world-class team to increase the Company’s market penetration, revenue growth and financial position,” said Jonathan Pollack.
Terms of the Unit
Each Unit is comprised of one common share (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share at a price of $0.40 for a period of three years from the date of issuance. The securities issued under the Offering have a hold period of four months and one day from the date of issuance.
Jonathan Pollack is the President of Samacha Capital Inc, a private investment firm. Previously, he was the Chief Financial Officer of AcuityAds Holdings Inc. (TSX/NASDAQ), the Chief Financial Officer of Kaboose Inc. (TSX) and the Executive Vice President of API Technologies (NASDAQ), as well as an investment banker in New York. Mr. Pollack serves on the board of several public and private companies, as well as numerous philanthropic organizations. Mr. Pollack received a Master of Science degree in Finance from the London School of Economics and a Bachelor of Commerce degree from McGill University.
Deborah Beatty is the Vice President of Corporate Strategy at PointClickCare, Canada’s leading private-equity-backed healthcare technology company. Deborah has extensive experience helping businesses build robust growth strategies leveraging new technologies, across several geographies. Previously, Deborah was the Head of Strategy for Middle East & Africa for Apple Inc., COO of Monitor Company in MENA, Vice President of Digital at Astral Media (TSE) and Corus Entertainment (TSE/NYSE), and a strategy consultant at Monitor Company based in New York and London. Deborah has an MBA from INSEAD and a BA from Princeton University.
The Company has engaged Cormark Securities Inc. (“Cormark“) to provide financial advisory services to the Company. Pursuant to the terms of the engagement, and subject to receipt of all necessary regulatory approvals, including but not limited to, approval of the TSX Venture Exchange, the Company has agreed to pay Cormark $75,000 in Common Shares of the Company as consideration for the services provided by Cormark under the engagement. In addition, the Company has agreed to pay Cormark a cash fee equal to 4% of the gross proceeds of the Offering and that number of compensation options of the Company (“Compensation Options“) equal to 4% of the Units sold pursuant to the Offering. Each Compensation Option is exercisable into one Unit at a price of $0.275 for a period of three years from issuance.
About ARHT Media
ARHT Media’s patented HoloPresence technology is a complete end-to-end solution that creates a sense of presence for audiences – as though the holographic presenter was actually live in the room. With no noticeable latency, ARHT Media makes two-way live communication with a 3D holographic presenter anywhere in the world possible. We can also playback pre-recorded content and 3D animations on our HoloPresence displays to deliver rich holographic experiences. Add to this our capability to stream the same content online on our premium Virtual Global StageTM.
Connect with ARHT Media
For more information, please visit www.arhtmedia.com or contact the investor relations group at [email protected]
ARHT Media trades under the symbol “ART” on the TSX Venture Exchange and “ARHTF” on the OTCQB.
Samacha Capital Inc.
This press release may contain “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the intention to exercise convertible securities of the Company; disclosure related to the Company’s sales funnel; the Company’s technology; the potential uses for the Company’s technology; the future planned events using the Company’s technology; the future success of the Company; the ability of the Company to monetize the ARHT Media technology; the development of the Company’s technology; and interest from parties in ARHT’s products. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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