NEWS -- EEStor closes $750,000 private placement
2019-08-06 20:03 ET - News Release
Mr. Ian Clifford reports
EESTOR COMPLETES $750,000 PRIVATE PLACEMENT
EEStor Corp. has completed the final tranche of its previously announced non-brokered private placement through the issuance of 3.5 million units for gross proceeds of $175,000. When combined with the earlier tranches, the company has raised $750,000 through the issuance of 15 million units in connection with the private placement.
Each unit is priced at five cents and consists of one common share and one common share purchase warrant. Each common share purchase warrant entitles the holder to acquire one additional common share at a price of 10 cents for a period of 60 months.
In connection with completion of the placement, the company has paid $9,000 and issued 80,000 warrants to an arm's-length third party who assisted in introducing a subscriber to the placement. All securities issued pursuant to the private placement are subject to a four-month-and-one-day statutory hold period in accordance with applicable Canadian securities laws.
A director of the company subscribed for and acquired 3.55 million units in the placement. The placement to this director constitutes a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the placement as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related party, exceeded 25 per cent of the company's market capitalization (as determined under MI 61-101).
Net proceeds from the private placement will be used to advance joint venture efforts, to independently test and certify the company's latest materials, and for working capital and general corporate purposes.
Ian Clifford, founder and chief executive officer of the company, commented: "We are pleased to have closed this important financing. Our key objective for the proceeds will be to further, and ultimately conclude, a number of highly strategic joint venture discussions currently under way on several continents. We are hopeful that, in the near future, we will secure strategic joint venture relationships with one or more global entities specializing in our space. Additionally, we plan to independently test and certify a selection of our latest materials, which have produced some very meaningful results internally."
About EEStor Corp.
EEStor is a developer of high-energy-density, solid-state capacitor technology utilizing the corporation's patented composition modified barium titanate (CMBT) material. The corporation is focused on joint venture and licensing opportunities for its technology across a broad spectrum of industries and applications.
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