St. John's-based Kraken Robotics said Monday it has closed a deal, announced last week, to raise $10 million from a consortium of investment bankers, who will then have the option to sell their stock on the TSX Venture exchange.

The $10 million raise was a “bought deal,” meaning that although Kraken shares are already publicly traded, the newly issued stock was sold to underwriters, rather than directly through the stock market.

Kraken appears to be spending part of the $10 million to pay for its acquisition of fellow Newfoundland and Labrador company PanGeo Subsea.

Under the terms of the buyout, Kraken will pay PanGeo shareholders $3 million cash and $7 million worth of stock immediately, with another $4 million coming in two years.

Kraken manufactures autonomous submarines for use by militaries and industry. PanGeo, which has offices in St. John's and Aberdeen, Scotland, builds seafloor imaging technology.

Kraken’s shares fell 17 percent when the deal was announced and have been in a steady decline since, reaching their lowest point in over a year Tuesday at 46 cents.