mCloud to price $25 million 9% cumulative convertible preferreds

By Marisa Wong

Los Angeles, July 15 – mCloud Technologies Corp. plans to price $25 million, or 1 million shares, of 9% series A cumulative perpetual preferred stock, with a $25.00 liquidation preference per share, at a public offering price of $24.9375 per share, according to a form F-1 filed with the Securities and Exchange Commission.

The series A preferreds will be convertible into common stock at a ratio based on the $25.00 liquidation preference divided by $4.00, or 6.25 common shares per series A preferred.

The offering will include an over-allotment option for $3.75 million, or 150,000 shares, of additional preferreds.

Maxim Group LLC is the underwriter.

The preferreds will be non-callable for the first year.

Each preferred will be sold with 6.25 warrants, exercisable for a total of up to 6.25 million common shares. The warrants, which will expire on Nov. 29, 2026, will be exercisable $4.75 per common share.

Proceeds will be used for working capital and general corporate purposes, including retiring convertible debenture debt that was due June 30.

The company is applying to list the preferreds and warrants on the Nasdaq Capital Market under the symbols “MCLDP” and “MCLDW,” respectively.

mCloud is a Calgary, Alta.-based provider of AI-powered asset management and environmental, social and governance solutions.

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