Imagination Park Entertainment Inc. is raising C$2 million through a nonbrokered private placement financing of 16,666,666 units at a price of 12 Canadian cents per unit.

Each unit comprises 1 common share and 1 nontransferable share purchase warrant.

The Vancouver, Canada-based company said Oct. 12 that it has received "firm commitments" from both new and existing investors and insiders for over C$2 million. Insiders of the company are planning to participate for at least 10% of the private placement.

The amount raised will be used for the commercialization of Imagination Park's XenoHolographic Product Suite, a platform-agnostic, cloud-based augmented reality enterprise platform.

The company will also use the proceeds to hire additional sales and marketing personnel, secure patents and pursue new partnerships with leading brands.

The private placement is expected to close on the week of Oct. 15.