TSO3 in $16 million bought deal

TSO3 (TSX:TOS) has agreed to sell 10 million new shares at a price of $1.60 each in a bought deal to a syndicate of underwriters led by Canaccord Adams. The stock closed at $1.80 yesterday.

Gross proceeds of $16 million will be used by TSO3 for new product initiatives, working capital and general corporate purposes.

In a statement, the company said Simon Robitaille, one of its co-founders and its chief scientific officer, has agreed to sell 150,000 common shares to the underwriters for gross proceeds of $240,000 “on the same terms and conditions as those of the offering.”

TSO3 has also granted the underwriters an over-allotment option to purchase up to an additional 15% of the number of shares issued from treasury for a period of 30 days after closing. The sale is expected to close on March 2, subject to regulatory approval.