Xtract One Technologies Inc. and Madison Square Garden (MSG) Sports Corp. have announced that MSG Sports will invest up to C$13.4 million (US$10 million) in Xtract One.

According to the companies, the initial investment of C$8.4 million (US$6.3 million) is effective immediately, with a subsequent investment of C$5 million (US$3.7 million) being conditional on the approval of Xtract One’s shareholders and all applicable regulatory approvals.

The overall investment is comprised of the sale of up to 31,925,595 units. Each unit will be comprised of one common share of Xtract One and one common share purchase warrant exercisable at a price of C$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 C$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 US resale restrictions. No commission or fee is or will be paid in connection with the investment.

The units issued pursuant to the investment have not been registered under the US Securities Act of 1933 as amended and may not be offered or sold within the US in the absence of US registration or an applicable exemption from the US registration requirements.

The initial and proposed subsequent equity investment will enable Xtract One to further innovate its advanced security solution 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. “I believe this relationship will create unique opportunities and benefit multiple industries.”