EdgeTI's LIFE Offering: Fueling Growth and Strengthening Financial Position

Edge Total Intelligence Inc. (TSXV: CTRL) (OTCQB: UNFYF) (FSE: Q5i), a leading provider of real-time digital operations software, has announced a non-brokered private placement financing, dubbed the LIFE Offering. This strategic move aims to raise up to approximately $4,999,490, with the proceeds earmarked for sales and growth programs around its "Digital Twins" technology and general working capital and corporate expenses. Let's delve into the details of this Offering and its potential impact on EdgeTI's financial position and market valuation.

Offering Details:

* Type of Offering: Non-brokered private placement financing
* Number of Units: Up to 9,433,000
* Price per Unit: C$0.53
* Aggregate Gross Proceeds: Up to approximately $4,999,490

Unit Composition:

* Each Unit consists of one subordinate voting share (SVS) and one half of one SVS purchase warrant (Warrant)
* Each whole Warrant is exercisable to acquire one additional SVS

Warrant Details:

* Exercise Price: C$0.67
* Term: 24 months from the date of issuance
* Acceleration Condition: If the price of the SVSs on the TSX Venture Exchange exceeds C$1.00 for any ten (10) continuous trading day period at any time following four months and one day from the issuance of such Warrant, the Company may issue a news release announcing the Acceleration Condition, following which the Warrants will expire fourteen (14) days from the date of dissemination of such news release

Exemption and Hold Period:

* Units will be offered for sale to purchasers resident in each of the provinces of Canada (other than Quebec) pursuant to the listed issuer financing exemption under Part 5A of NI 45-106
* Securities issued under the Listed Issuer Financing Exemption will not be subject to a hold period pursuant to applicable Canadian securities laws

Use of Proceeds:

* Net proceeds will be used for sales and growth programs around its "Digital Twins" technology (marketing costs, partner development and commission costs, industry fees) and general working capital and corporate expenses (director and officer fees, contractor and consulting fees, professional fees, and general and administration expenditures)

Conditions for Closing:

* The closing of the Offering is subject to certain conditions, including the receipt of all necessary approvals and the submission of all required forms to the TSX Venture Exchange

U.S. Securities Laws:

* The securities of the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws

Financial Advisory Agreement:

* The Company has entered into a financial advisory agreement with Roth Canada, Inc. ("Roth") dated January 10, 2025, whereby Roth will be providing the Company with strategic advisory services for a cash fee of $125,000



Potential Impact on Financial Position and Market Valuation:

The LIFE Offering has the potential to significantly impact EdgeTI's financial position and market valuation in several ways:

1. Financial Position:
* The influx of capital from the Offering can help EdgeTI expand its marketing efforts, develop partnerships, and invest in industry fees, all of which can drive growth and revenue.
* The additional funds can also strengthen EdgeTI's balance sheet, providing a buffer against potential downturns and enabling the company to pursue new opportunities.
2. Market Valuation:
* The Offering is priced at C$0.53 per Unit, which represents a significant increase from the previous closing price of C$0.40 per share (as of January 13, 2025). Assuming the Offering is fully subscribed, the issuance of 9,433,000 new shares will increase the company's share capital and potentially dilute the value of existing shares. However, the increased market capitalization and the strategic use of funds could offset this dilution.
* If the company successfully executes its growth plans and generates positive cash flows from its "Digital Twins" technology, it could lead to an increase in its market valuation. Investors typically value companies based on their future earnings potential and growth prospects.

In conclusion, the LIFE Offering has the potential to strengthen EdgeTI's financial position by providing additional capital for growth and working capital needs. However, the impact on market valuation will depend on the company's ability to execute its growth plans and generate positive cash flows from its "Digital Twins" technology. As an investor, it is essential to stay informed about the company's progress and make well-researched decisions based on the available data.