EEStor Corporation to Complete Private Placement and Amend Terms of Share Purchase Warrants
March 19 2020 - 6:00AM
EEStor Corporation (TSX.V: ESU) (“
EEStor” or the
“
Corporation”) announces that it will offer (the
“
Offering”) up to 16,666,667 units (each, a
“
Unit”) by way of non-brokered private placement
at a price of $0.03 per Unit to raise gross proceeds of up to
$500,000. Each “Unit” will consist of one common share of the
Corporation, and one share purchase warrant entitling the holder to
acquire an additional common share at a price of $0.05 for a period
of twenty-four months.
Ian Clifford, Founder and CEO of the Corporation
commented: “With the challenging global markets we face today, the
board of EEStor has decided that strengthening our balance sheet is
a prudent strategy. The imperative for sustainable and localized
power generation has never been more evident, and as we continue to
progress forward with our acquisition of Infinium Generation, we
foresee many opportunities for EEStor shareholders.”
The Corporation intends to use the proceeds of
the Offering to retire existing payables, support operations and
cover general and administrative expenses for the next six months.
Assuming the Offering is completed in full, the Corporation
estimates allocating the proceeds as follows:
Use of Proceeds |
Allocated Amount |
Administrative Costs of Private Placement |
$25,000 |
Finders’ Fees/Commissions for Private Placement |
$30,000 |
Retirement of Existing Trade Payables |
$125,000 |
Retirement of Bridge Loan |
$53,000 |
Retirement of Promissory Note |
$36,000 |
Outstanding Historical Audit Expenses |
$25,000 |
Shareholders General Meeting |
$25,000 |
Accounting and Bookkeeping |
$30,000 |
Transfer Agent |
$6,000 |
Legal Fees |
$50,000 |
Regulatory Filing Fees |
$10,000 |
General and Administrative Expenses |
$75,000 |
Unallocated Working Capital |
$10,000 |
Gross Proceeds |
$500,000 |
The above figures are estimates only and there
may be circumstances in which the Corporation is required to
reallocate proceeds of the Offering based on the operational needs
of the Corporation, or in the event the Offering is not completed
in full.
The Corporation may pay finders’ fees to
eligible parties who have introduced subscribers to the Offering.
All securities to be issued by the Corporation in connection with
the Offering will be subject to a four-month-and-one-day statutory
hold period in accordance with the policies of the TSX Venture
Exchange. Completion of the Offering remains subject to approval of
the TSX Venture Exchange, and cannot be completed until such
approval has been obtained. Completion of the Offering is not
contingent on completion of any transaction with Infinium
Generation Ltd.
Warrant Amendment
The Corporation previously announced that it
would amend the terms of an aggregate of 4,055,000 share purchase
warrants (the “March Warrants”), currently
exercisable to acquire common shares of the Corporation at a price
of $0.45 until March 16, 2020. The March Warrants were previously
issued in connection with a tranche of a non-brokered private
placement completed by the Corporation. In addition to the March
Warrants, the Corporation now intends to amend the terms of a
further 2,743,000 share purchase warrants (the “April
Warrants”), issued in connection with a further tranche of
the same placement, and which are currently exercisable to acquire
common shares of the Corporation on the same terms until April 12,
2020.
Under the terms of the amendment, both the March
Warrants and the April Warrants will now be exercisable at a price
of $0.10 until March 16, 2021 and April 12, 2021, respectively. In
accordance with the policies of the TSX Venture Exchange, the
amendment will also provide that the exercise period of the
warrants will be reduced to thirty days if, for any ten consecutive
trading days, the closing price of the common shares of the
Corporation on the TSX Venture Exchange is $0.125 or greater. The
reduced thirty-day period will begin seven calendar days after such
ten-consecutive-trading-day period.
The March Warrants, and the April Warrants, were
previously issued in connection with a non-brokered private
placement completed by the Corporation, and not in compensation for
any services provided to the Corporation. None of the March
Warrants, or the April Warrants, are held by directors, officers or
control persons of the Corporation.
About EEStor
EEStor is a developer of high energy density
solid-state capacitor technology utilizing patented Composition
Modified Barium Titanate (CMBT) material. EEStor is committed to
providing commercially viable and sustainable energy solutions
across a broad spectrum of industries and applications.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
All statements, other than statements of
historical fact, contained in this press release including, but not
limited to (i) generally, or the “About EEStor” paragraph which
essentially describes the Corporation’s outlook and objectives,
constitute “forward-looking information” or “forward-looking
statements” within the meaning of certain securities laws, and are
based on expectations, estimates and projections as of the time of
this press release. Forward looking statements are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by the Corporation as of the time of such
statements, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. These
estimates and assumptions may prove to be incorrect.
Many of these uncertainties and contingencies
can directly or indirectly affect, and could cause, actual results
to differ materially from those expressed or implied in any
forward-looking statements. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Forward-looking statements are
provided for the purpose of providing information about
management's expectations and plans relating to the future. The
Corporation disclaims any intention or obligation to update or
revise any forward-looking statements or to explain any material
difference between subsequent actual events and such
forward-looking statements, except to the extent required by
applicable law.
FOR FURTHER INFORMATION, PLEASE
CONTACT:
Mr. Ian Clifford Chief Executive Officer 416-535-8395
ext.3ian.clifford@eestorcorp.com |
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