Radient Technologies (RDDTF)

[jp68]

https://web.tmxmoney.com/article.php?newsid=6726374490727895&qm_symbol=RTI

Radient Announces Successful Closing of its Equity Offering for Gross Proceeds of $5,750,000
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

EDMONTON, Alberta, May 26, 2020 (GLOBE NEWSWIRE) -- Radient Technologies Inc. (“Radient” or the “Company”) (TSX Venture: RTI; OTCQX: RDDTF) is pleased to announce that it has closed its public equity financing initially announced on May 20, 2020. The Company issued 28,750,000 units (the “Units”) of the Company (which includes 3,750,000 Units issued pursuant to the exercise in full of the over-allotment option) at a price of $0.20 per Unit (the “Offering Price”) for aggregate gross proceeds of $5,750,000 (the “Offering”). The Offering was completed by Eight Capital (the “Agent”) as sole agent.

Each Unit consisted of one common share in the capital of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share, at an exercise price of $0.30 until May 26, 2023. The Warrants will not be listed for trading on the TSX Venture Exchange or any other public exchange.

In connection with the Offering the Company has paid the Agent a cash fee equal to up to 7% of the aggregate proceeds from the Offering (the “Commission”). In addition to the Commission, the Company has issued to the Agent non-transferable compensation warrants equal to up to 7% of the Units sold under the Offering. Each compensation warrant is exercisable for a Unit at the Offering Price until May 26, 2023.

The net proceeds of the Offering will be used for working capital and general corporate purposes as set out in the Prospectus Supplement (as defined below).

The Offering was conducted in Canada pursuant to a prospectus supplement dated May 21, 2020 (the “Prospectus Supplement”) to the Company’s short form base shelf prospectus, filed in all of the provinces of Canada except for Québec, and offered outside of Canada on a private placement basis.

Certain management and insiders of the Company participated in the Offering and were issued an aggregate of 425,000 Units. Such participation in the Offering constitutes a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Offering is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the securities issued to related parties nor the consideration for such securities exceed 25% of the Company’s market capitalization. The Company did not file a material change report 21 days prior to closing of the Offering as the participation of insiders of the Company in the Offering had not been confirmed at that time.

The Offering remains subject to the final approval of the TSXV.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state of the United States in which such offer, solicitation or sale would be unlawful. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as such terms are defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements of the 1933 Act and any applicable state securities laws.