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Solegear Completes $500,000 Private Placement Financing | Now Raising Another $500K
Tuesday, August 29, 2017Company Profile | Follow Company
Vancouver, BC, August 29, 2017--(T-Net)--Solegear Bioplastic Technologies Inc. (TSX-V:SGB) announced that it has completed the private placement financing announced last month for aggregate gross proceeds of $500,000.
The Company issued 5,000,000 Units at a price of $0.10 per Unit. Each unit is comprised of one common share of the Company and one common share purchase warrant.
As a result, the Company has a total of 79,806,854 common shares issued and outstanding. Insider participation in the private placement totaled 480,000 Units.
Each Warrant entitles its holder to acquire one additional Share of the Company at a price of $0.15 per Share within the 24-month period following the closing of the Private Placement.
The net proceeds of the Private Placement will be used for working capital and ongoing commercial activities.
“We have seen significant growth in the demand for our products in the first 4 months of our new financial year,” said Paul Antoniadis, CEO of Solegear. “Increased regulatory pressure on packaging made from polystyrene has created commercial momentum beyond our original expectations. The net proceeds of the private placement will be used to accelerate fulfillment of pending customer orders and line extensions”.
The Company also announce that it has engaged Gravitas Securities in a brokered private placement for an additional 5,000,000 Units at a price of $0.10 per Unit to raise gross proceeds of up to an additional $500,000.
The Company may potentially increase the size of the brokered financing depending on market conditions.
The closing of the Private Placement is subject to final approval by the TSX Venture Exchange (the “TSX-V“). The Private Placement was unanimously approved by the directors of the Company.
About Gravitas Securities Inc.
Gravitas Securities is a leading wealth management and capital markets firm comprised of tactical individuals known for their sophisticated sector expertise, commitment to excellence, and a global platform committed to integration and innovation. Gravitas provides a wide range of investment services for retail and corporate clients globally with offices in Toronto, Vancouver, and Calgary, and is represented in the United States through its FINRA representative, Gravitas Capital International, in New York.
Gravitas Securities Inc. is a member of IIROC and CIPF.
About Solegear Bioplastic Technologies Inc.
Solegear Bioplastic Technologies Inc. (TSX-V:SGB) is an innovator in the field of next generation bioplastics made from annually renewable plant-based sources. Committed to the principles of Green Chemistry, Solegear is driven by its mission to create healthier, safer and stronger communities by fundamentally changing the way plastics are made.
Solegear's proprietary bioplastic formulations are designed to meet today's social and corporate requirements to lower carbon emissions, reduce waste and remove toxicity typically associated with traditional petroleum-based plastics. Together with its partners, Solegear custom engineers, produces and distributes its high-performance bioplastics as resin, sheets and finished goods with some of the highest percentages of renewable, plant-based materials currently available in the industry.
For more information: www.solegear.ca
Contact:
Caleb Jeffries Elisha McCallum
Kin Communications FleishmanHillard Vancouver
1-866-684-6730 1-778-668-0185
SGB@kincommunications.com Elisha.McCallum@fleishman.ca
Capital Markets Advisor:
Nicole Marchand
1-416-428-3533
Nicole@nm-ir.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibilities for the adequacy or accuracy of this release.
This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.
Cautionary Statement Regarding Forward-Looking Information
Information in this news release that is not current or historical factual information may constitute forward-looking information within the meaning of securities laws. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Such factors include, among others, the risk that: (i) the bioplastics market may not grow as anticipated by the Company, and (ii) the economic circumstances of the Company may change and result in the proceeds of the Private Placement being used other in the manner described above.
When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
Other than as required under securities laws, we do not undertake to update this information at any particular time.
Forward-looking information contained in this news release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.
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