SRX Global Inc. filed a prospectus supplement for the resale of up to 41,781,566 common shares by Keystone Capital Partners.
The registration stems from a Common Share Purchase Agreement. Keystone Capital Partners will receive all proceeds from these specific resales. SRX Global may receive cash only when it elects to sell shares directly to Keystone.
The proposed offering represents more than double the company’s 19.5 million currently outstanding shares. This filing follows a 1-for-60 reverse stock split and the acquisition of EMJ Crypto Technologies. The potential influx of shares creates a significant supply overhang and risk of stock dilution.