VANCOUVER, British Columbia,
Nov. 24, 2021 /CNW/ -- (OTCQB:
MAPPF) (TSXV: MAPS) (FSE: 5D00) ProStar Holdings Inc. (the
"Company" or "ProStar®") is pleased to announce that
it has closed its previously announced brokered and non-brokered
private placements (collectively, the "Offering") for gross
proceeds of $10,200,000. The
brokered portion of the Offering (the "Brokered Offering")
was led by Echelon Wealth Partners Inc. (the "Agent") and
consisted of the sale of 14,375,000 units (the "Units") for
aggregate gross proceeds of $5,750,000 at a price of $0.40 per Unit (the "Offering Price").
Each Unit consisted of one Common Share (each, a "Common
Share", and collectively the "Common Shares") and
one-half of one Common Share purchase warrant ,(each whole warrant,
a "Warrant" and collectively, the "Warrants"). Each
Warrant entitles the holder thereof to acquire one Common Share at
a price of $0.56 per Common Share for
a period of 24 months from the closing date of the Offering.
Under the non-brokered portion of the Offering the Company
raised gross proceeds of $4,450,000,
through the sale of 11,125,000 Units at the Offering Price. The
Offering was announced on October 27,
2021 and subsequently amended on November 12, 2021 and November 22, 2021 to accommodate additional
demand.
The Warrants were issued pursuant to a warrant indenture dated
November 24, 2021 entered into
between the Company and Computershare Trust Company, as warrant
agent.
As consideration for Agent's services in connection with the
Brokered Offering, the Agent received $402,500 and 1,006,250 broker warrants, each
exercisable to acquire one Common Share at the Offering Price for a
period of 24 months from the closing date of the Offering. In
addition, as the completion of the Brokered Offering resulted in
gross proceeds to the Company of greater than $4,000,000, the Company paid to Echelon a
corporate finance fee of 143,750 Units, representing 1.0% of the
aggregate gross proceeds of the Brokered Offering at a deemed price
per Unit equal to the Offering Price.
All securities issued pursuant to the Offering, including any
underlying securities, are subject to a four-month-and-one-day hold
period in accordance with applicable Canadian securities laws.
The Company will use the net proceeds of the Offering for sales,
marketing, research and development, and working capital
requirements.
The securities offered pursuant to the Offering have not been,
and will not be, registered under the U.S. Securities Act, or any
state securities laws, and, accordingly, may not be offered or sold
within the United States, or to or
for the account or benefit of persons in the United States or "U.S. Persons", as such
term is defined in Regulation S promulgated under the U.S.
Securities Act, unless registered under the U.S. Securities Act and
applicable state securities laws or pursuant to an exemption from
such registration requirements.
About ProStar Holdings Inc.
ProStar is a world leader in Precision Mapping Solutions® and is
creating a digital world by leveraging the most modern GPS, cloud,
and mobile technologies. ProStar is a software development company
specializing in developing patented cloud and mobile precision
mapping solutions focused on the critical infrastructure industry.
ProStar's flagship product, PointMan®, is designed to significantly
improve the workflow processes and business practices associated
with the lifecycle management of critical infrastructure assets
both above and below the Earth's surface.
ProStar's PointMan is offered as a Software as a Service (SaaS)
and seamlessly connects the field with the office and provides the
ability to precisely capture, record, display, and manage critical
infrastructure, including roads, railways, pipelines, and
utilities. Some of the largest entities in have adopted ProStar's
solutions, including Fortune 500 construction firms, Subsurface
Utilities Engineering (SUE) firms, utility owners, and government
agencies. ProStar has strategic business partnerships with the
world's leading geospatial technology providers, data collection
equipment manufacturers, and their dealer networks.
The Company has made a significant investment in creating a vast
intellectual property portfolio that includes 20 issued patents.
The patents protect the methods and systems required to digitally
capture, record, organize, manage, distribute, and display the
precise location of critical infrastructure, including buried
utilities and pipelines. ProStar's Executive management team has
extensive experience in the management of both early stage and
Fortune 500 technology companies in the private and public
sectors.
Contact:
Alex Moore
Investor Relations
970-822-4792
Investorrelations@prostarcorp.com
Legal Disclaimer
Neither 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.
Forward-Looking Statements
This press release contains forward-looking information within the
meaning of Canadian securities laws. Such information includes,
without limitation, information regarding the terms and conditions
of the Company's future plans. Although the Company believes that
such information is reasonable, it can give no assurance that such
expectations will prove to be correct.
Forward-looking information is typically identified by words
such as: "believe", "expect", "anticipate", "intend", "estimate",
"postulate", and similar expressions, or are those, which, by their
nature, refer to future events. Such statements include, without
limitation, statements with respect to the Company's expected use
of proceeds from the Offering and other forward-looking
information. The Company cautions investors that any
forward-looking information provided by the Company is not a
guarantee of future results or performance, and that actual results
may differ materially from those in forward-looking information as
a result of various factors, including, but not limited to: the
state of the financial markets for the Company's securities; the
state of the technology sector; recent market volatility; the
COVID-19 pandemic; the Company's ability to raise the necessary
capital or to be fully able to implement its business strategies;
the Company's inability to apply the proceeds of the Offering as
anticipated by management; and other risks and factors that the
Company is unaware of at this time. The reader is referred to the
Company's recent Information Circular filed on SEDAR on
November 20, 2020 for a more complete
discussion of applicable risk factors and their potential effects,
copies of which may be accessed through the Company's issuer page
on SEDAR at www.sedar.com.
The forward-looking statements contained in this press release
are made as of the date of this press release. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
SOURCE ProStar Corp