Westport agreed to sell 4,854,369 common shares or pre-funded warrants in a registered direct offering, paired with an equal number of private-placement warrants, for expected gross proceeds of about $10 million.
The combined purchase price is $2.06 per share-and-warrant package, and the private-placement warrants carry a $2.06 exercise price, become exercisable immediately and expire in two years.
A full cash exercise of those warrants would bring Westport another roughly $10 million, though the company said it cannot predict whether holders will exercise them before expiry.
The Vancouver-based company expects the deal to close around June 23, subject to customary conditions and stock-exchange approvals, and plans to use net proceeds for working capital and general corporate purposes.