TORONTO, Oct. 16, 2020 (GLOBE NEWSWIRE) -- CHAR Technologies Ltd. (“CHAR Technologies” or the “Company”) (TSX Venture Exchange: YES) is pleased to announce that it has completed the non-brokered private placement (the "Offering") described in its news release of October 5, 2020. In connection with the closing of the Offering, the Company issued an aggregate of 6,950,000 common shares in the capital of the Company ("Shares") at a price of CDN$0.10 per Share for gross proceeds of CDN$695,000.
“The offering had an exceptional response, and was oversubscribed,” said Andrew White, CEO. There were a total of 29 participants in the offering, including all seven Directors and all of the Senior Management team.
One of the new shareholders, the Portfolio Manager for a Canadian Institutional Investor, offered comment on the Private Placement. “We see tremendous opportunity in the Cleantech Sector and believe that CHAR is well positioned to capitalize on that. We feel there is a meaningful disconnect between the current share price and potential value of the Company.”
This transaction constituted a "related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Shares acquired by the insiders, nor the consideration for the Shares paid by such insiders, exceed 25% of the Company's market capitalization. As required by MI 61-101, the Company advises that it expects to file a material change report relating to the Offering less than 21 days before completion of the Offering, which is necessary to complete the Offering in an expeditious manner and is reasonable in the circumstances.
The Company confirms there is no material information pending disclosure.
CHAR Technologies intends to use the net proceeds of the Offering for general working capital purposes.
The Company will pay no finder's fees in connection with subscriptions from subscribers introduced to this Offering.
The Offering remains subject to final approval of the TSX Venture Exchange.
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.