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Wednesday, 01/25/2023 9:13:24 AM

Wednesday, January 25, 2023 9:13:24 AM

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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! NEWS (nobody cares about) !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Fobi AI announces closing of non-brokered private placement, participation includes strategic investor, as well as officers, and senior management
6:00 PM ET 1/24/23 | GlobeNewswire

Fobi AI announces closing of non-brokered private placement, participation includes strategic investor, as well as officers, and senior management


VANCOUVER, British Columbia, Jan. 24, 2023 (GLOBE NEWSWIRE) --

FOBI AI Inc. (TSXV: FOBI) (OTCQB: FOBIF) (the "Company" or "FOBI"), an industry leader in harnessing AI and data intelligence to enable digital transformation is pleased to announce that it has completed a non-brokered private placement offering (the "Offering") of 4,723,946 units of the Company ("Units") at a price per Unit of $0.175 for aggregate gross proceeds of $826,690.55.

Each Unit consists of one (1) common share of the Company (a "Unit Share") and one-half of one (1/2) common share purchase warrant of the Company (each whole such warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one (1) additional common share in the capital of the Company (a "Warrant Share") at an exercise price of $0.30 per Warrant Share at any time until 4:30 p.m. (Vancouver Time) on January 24, 2025.

The net proceeds from the Offering are expected to be used for general and corporate working capital purposes. All securities issued pursuant to the Offering will be subject to a statutory hold period ending on May 25, 2023.

In connection with the Offering, a finder's fee of $21,875.01 was paid and 125,000 finder's warrants (each, a "Finder's Warrant") were issued to an arm's-length party. The Finder's Warrants have the same terms as the Warrants.

FOBI CEO, Rob Anson stated: "We have put a great deal of focus and effort in executing and achieving our goal of turning cash flow positive in 2023. The business is gaining momentum and this small strategic raise gives us the ability to complete a couple of key strategic company initiatives. We have strong internal capital support which is a great asset as it enables the company to operate from a position of strength and keep shares in familiar friendly hands."

Insider Participation

Mr. Rob Anson and Mr. Gavin Lee, the Chief Executive Officer and Chief Operating Officer of the Company (the "Insiders"), each respectively participated in the Offering by acquiring 571,420 Units in the case of Mr. Anson, and 100,000 Units in the case of Mr. Lee. As a result of the participation of the Insiders in the Offering, the Offering constitutes a "related party transaction" under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions ("MI 61-101").

Pursuant to sections 5.5(a) and 5.7(1)(a) of MI 61-101, the Company is exempt from obtaining a formal valuation and minority approval of the Company's shareholders as the fair market value of each of the Insiders participation, individually, and in aggregate, in the Offering is below 25% of the Company's market capitalization as determined in accordance with MI 61-101.

A material change report including details with respect to the related party transaction could not be filed less than 21 days prior to the closing of the Offering as the Company did not receive prior confirmation of such participation and the Company deemed it reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner.

This press release is available on the Fobi website.

To download the Fobi Investor Experience Wallet Pass to get enhanced access to investor information about Fobi please visit the download page.