CHAR Technologies Ltd. is pleased to announce its intention, in response to investor demand, to further increase the size of the $3,000,000 non-brokered private placement (the "Offering") it announced on February 9, 2022, to a final total size of up to $4,894,881.
The size of the Offering was first increased from $3,000,000 to $4,605,000, as announced in the Company’s March 8, 2022 news release. The Company now intends a further increase of up to 644,181 units at the offering price of $0.45 per unit for additional gross proceeds of up to $289,881. The total Offering will now amount to up to 10,877,514 units at a price of $0.45 per unit for gross proceeds of up to $4,894,881. The other terms of the Offering will remain unchanged.
Each unit will comprise one common share of the Company (“Share”) and one-half share purchase warrant (“Warrant”). Each Warrant will entitle the holder to acquire one Share for eighteen months after the closing of the Offering at a price of $0.60.
The majority of the Offering is expected be raised from existing shareholders, and current and former directors, executive officers, business associates and employees, some of whom are insiders of the Company. Any participation by insiders in the Offering would 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 expects such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the Units subscribed for by the insiders, nor the consideration for the Units paid by such insiders, would exceed 25% of the Company's market capitalization.
CHAR Technologies intends to use the net proceeds of the Offering to advance the development of both contracted and earlier stage projects and for general working capital needs.
The closing of the Offering is now expected to occur in mid-March 2022, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and the applicable securities regulatory authorities.
The Company may pay a finder’s fee equal to 6% of the value of select proceeds raised under the Financing plus 6% in broker warrants up to $2,666,045. The remaining $2,228,836 raised would not include any commissions or broker warrants as it relates to funds raised by the Company from 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.