HTC Purenergy Inc. (dba "HTC Extraction Systems") Closes Bought Deal Private Placement
Regina, Saskatchewan--(Newsfile Corp. - October 23, 2019) - HTC Extraction Systems (TSXV: HTC) (the "Company" or "HTC") is pleased to announce that it has closed its previously announced private placement financing of 25,000,000 units of the Company (the "Units") at a price of $0.40 per Unit (the "Offering Price"), with gross proceeds to the Company of $10 million (the "Offering"). The Company intends to use the net proceeds of the Offering for the purchase of extraction, purification and refining equipment and general working capital purposes.
Each Unit consists of one common share in the capital of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will be exercisable to acquire one Common Share (a "Warrant Share") at an exercise price of $0.70 (the "Exercise Price") per Warrant Share for a period of 36 months from the closing of the Offering (the "Expiry Date"), subject to acceleration provisions. If at any time between the date that is four months and one day from the closing of the Offering and the Expiry Date, the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange is greater than $1.00 for the preceding 10 consecutive trading days, the Company shall have the option to accelerate the exercise of the Warrants at the Exercise Price by delivering a notice to holders of the Warrants (the "Acceleration Notice"). In such instance, the Warrants will be exercisable until not less than the 30th day following the delivery of the Acceleration Notice.
The Offering was underwritten on a "bought deal" basis by a syndicate of underwriters, with Canaccord Genuity Corp. acting as sole bookrunner and lead underwriter on behalf of the syndicate.
All securities issued or issuable under the Offering will be subject to a statutory hold period lasting four months and one day following the closing of the Offering.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE RELEASE.
The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended and may not be offered or sold In the United States or to, or for the account of benefit of, US persons absent registration or an applicable exemption from the registration requirements. This news 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 in which such offer, solicitation or sale would be unlawful.
This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Forward- looking statements may include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of HTC. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur or be achieved. This press release contains forward-looking statements pertaining to, among other things, the intended use of the net proceeds of the Offering.
Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by HTC and described in the forward-looking information contained in this press release.
Although HTC believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance.
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
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