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Xtract One receives investment from Madison Square Garden Sports

Toronto-based Xtract One Technologies Inc. and Madison Square Garden Sports Corp. announced that MSG Sports will invest up to $13.4 million in Xtract One.

Xtract One’s (formerly Patriot One) patron screening security solutions are utilized by arenas, stadiums, ticket venues, attractions, casinos, workplaces and schools.

An initial investment of $8.4 million  is effective immediately, with the subsequent investment of $5 million being conditional on the approval of Xtract One’s shareholders and regulatory approvals. The investment is comprised of the sale of up to 31,925,595 units at a price of $0.42 per unit. Each unit will be comprised of one common share of Xtract One and one common share purchase warrant  exercisable at a price of $0.60 for a period of five years following the date of its issuance.

The initial tranche of the investment comprised the issuance of 20,000,000 Units for aggregate gross proceeds of C$8,400,000. The proposed second tranche of the investment will be comprised of the issuance of 11,925,595 units for aggregate gross proceeds of $5,008,749.90. All securities issued under the investment will be subject to Canadian resale restrictions of four months and one day, in addition to applicable U.S. resale restrictions. No commission or fee is or will be paid in connection with the investment.

According to Xtract One, the units issued pursuant to the investment have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States in the absence of U.S. registration or an applicable exemption from the U.S. registration requirements.

Xtract One said in a press release the equity investment will enable the company to further innovate its security solutions and accelerate its growth into new market segments.

“We are thrilled to announce this investment and partnership with MSG Sports. We continue to see impressive growth in market interest and customer adoption of our security technology solutions,” said Peter Evans, CEO of Xtract One, in a statement. “I believe this relationship will create unique opportunities and benefit multiple industries.”

Xtract One will hold a special meeting of shareholders to obtain disinterested shareholder approval of the second tranche of the investment, currently scheduled for April 11, 2023.