TORONTO, Feb. 05, 2021 (GLOBE NEWSWIRE) -- CHAR Technologies Ltd. ("CHAR" or the “Company”) (TSX Venture Exchange: YES) is pleased to announce it has completed the non-brokered private placement (the "Offering") described in its news release on January 27th, 2021. In connection with the Closing of the Offering the Company issued an aggregate of 18,461,537 units at a price of CDN$0.325 per unit for gross proceeds of CDN$6,000,000. Each unit is comprised of one common share of the Company (“Shares”) and one-half share purchase warrant (“Warrant”). The Company issued an aggregate of 9,230,769 Warrants. Each Warrant will entitle the holder to acquire one common share of the Company for two years after the closing of the offering at a price of CDN$0.40.
“We were very pleased with the overwhelming interest and exceptional investor support in the offering which had substantial demand beyond the placement size. We had significant institutional participation and interest,” said Andrew White, CEO. “The proceeds will not only strengthen our financial position but will also enable us to capitalize on the growing number of opportunities emerging in the Clean Tech sector for our products and technologies.”
A Portfolio Manager at a Canadian Institutional Investor offered comment on the Private Placement, “We see the Company at an inflexion point as it is transforming its business model, ready to commercialize its technology in an emerging market segment with little direct competition in the growing Cleantech Sector.”
Certain insiders of the Company acquired Shares in the Offering. This participation by insiders in the Private Placement constitute a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). However, the Company considers such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the Shares subscribed for by the insiders, nor the consideration for the Shares paid by such insiders, would exceed 25% of the Company's market capitalization.
CHAR intends to use the net proceeds of the Offering primarily for working capital needs with anticipated contracts, project development activities and investment in technology initiatives. The Company paid a cash finder’s fee to Leede Jones Gable equal to 6% of $5,000,000 of proceeds raised under the Financing plus 6% in broker warrants of 914,967. The additional $1,000,000 raised did not include any commissions or broker warrants as it related to funds raised by the Company and primarily included insiders, friends and family and existing shareholders.
The securities issued under the Offering, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities. The Company confirms there is no material information pending disclosure. The Financing is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the final approval of the TSX Venture Exchange (“the TSXV”) and the applicable securities regulatory authorities. The Offering has received the conditional approval of the TSX Venture Exchange and remains subject to final approval of the TSXV.