Esstra Industries Announces Closing of $300,000 Non-Brokered Private Placement
Vancouver, British Columbia--(Newsfile Corp. - August 7, 2020) - Esstra Industries Inc. (TSXV: ESS) ("Esstra" or the "Company") is pleased to announce that the non-brokered private placement previously announced on July 16, 2020 (the "Private Placement") has closed. Under the Private Placement, the Company issued 1,500,000 units ("Units") at a price of $0.20 per Unit for gross proceeds of $300,000. Each Unit was comprised of one (1) common share in the capital of the Company (each a "Common Share") and one-half of one (1/2) transferrable Common Share purchase warrant (each whole warrant, a "Warrant"). All securities issued under the Private Placement, including securities issuable on exercise thereof, are subject to a hold period expiring December 8, 2020 (the "Hold Period"), in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws. Each Warrant entitles the holder to purchase one Common Share at a price of $0.40 per Common Share until August 7, 2022, subject to accelerated expiry provisions. In the event the closing price of the Company's Common Shares exceeds $0.80 per Common Share for a period of ten (10) consecutive trading days following the expiry of the Hold Period, then at the Company's election, the 24 month period within which the Warrants are exercisable will be reduced and the holders of the Warrants will be entitled to exercise their Warrants for a period of 30 days commencing on the day the Company provides the acceleration notice via press release or written notice to all Warrant holders (the "Acceleration Period"). Any outstanding Warrants not exercised during the Acceleration Period will expire on completion of the Acceleration Period.
The Private Placement was effected with 6 insiders of the Company subscribing for $115,000 or 575,000 Units.
As described in Esstra's news release dated July 16, 2020, the proceeds of the Private Placement are expected to be used to purchase the equity interest in ExSorbtion Inc. and for general working capital purposes.
The Company also announces that Ms. Leah Hodges has resigned as Corporate Secretary, Ms. Virginia Olnick, CEO and a director of the Company, was appointed to replace Ms. Hodges.
On behalf of the Board of Directors,
Esstra Industries Inc.
For further information, please contact the Company at:
This news release contains certain statements that may be deemed "forward-looking statements. 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. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors should change, except as required by law.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this news release.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/61334