MSG Sports Makes Up to $10 Million Investment in Xtract One

By Robb M. Stewart

Madison Square Garden Sports Corp. agreed.  to invest up to 13.4 million Canadian dollars ($10 million) for a stake in Xtract One Technologies Inc., a maker of threat detection and security systems for venue buildings.
Xtract on Monday said MSG Sports will make an immediate investment of C$8.4 million, with a subsequent investment of C$5 million conditional on the approval of Xtract’s shareholders and regulators.
The deal will include the sale of up to 31.9 million Xtract units at a price of C$0.42 each, with one unit consisting of one share and one share-purchase warrant.
If MSG Sports makes the full investment of C$13.4 million, it will hold approximately 16% of the issued and outstanding shares of Xtract on an undiluted basis, or 28% on a partially diluted basis.
The companies said MSG Sports is buying the stake for investment purposes and may acquire additional securities or sell some or all of its holdings from time to time.
Write to Robb M. Stewart at robb.stewart@wsj.com