UGE Announces Private Placement of Units
Toronto, Ontario--(Newsfile Corp. - December 9, 2020) - UGE International Ltd. (TSXV: UGE) (the "Company" or "UGE"), a leader in renewable energy solutions for the commercial and industrial sector, is pleased to announce that it has launched a non-brokered private placement of at least 555,556 units ("Units"), with each such Unit consisting of one common share in the capital of the Company (the "Common Shares") and half of one common share purchase warrant (each whole warrant, a "Unit Warrant") at an issuance price of $1.80 per Unit for aggregate gross proceeds of a minimum of $1,000,000 (the "Offering"). Each Unit Warrant entitles the holder to purchase one Common Share at an exercise price of $2.40 per share for a period of 18 months from the date of issuance. The Unit Warrants automatically accelerate their expiry in the event the trading price of the Common Shares on the TSX Venture Exchange equals or exceeds $3.00 for ten (10) consecutive trading days.
It is anticipated that insiders of the Company will subscribe for at least 100,000 Units for aggregate gross proceeds of $180,000 under the Offering. The issuances of Units to insiders pursuant to the Offering will also be considered related party transactions within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101").
"2020 has been a remarkable year for UGE, as our team has demonstrated project backlog growth to US$112 million through September 30th from US$30 million at the beginning of the year," said UGE CEO, Nick Blitterswyk. "This modest private placement, with meaningful insider participation, reinforces our team's commitment to our growth strategy and positions the company well as we embark on the next stage of our growth in 2021."
The Company intends to use the net proceeds of the Offering for general working capital purposes. In connection with the Offering of Units to non-insiders, the Company may pay a finder's fee, subject to regulatory and stock exchange approval.
The Offering is subject to all necessary regulatory and stock exchange approvals and is expected to close on or about Dec 18, 2020. All of the securities issued by the Company pursuant to the Offering are subject to a hold period equal to four months and one day from the date of issuance.
UGE delivers immediate savings to businesses through the low cost of solar energy. We help commercial and industrial clients become more competitive by providing low cost distributed renewable energy solutions at no upfront cost and maximum long-term benefit. With over 400MW of global experience, we work daily to power a more sustainable world. Visit us at www.ugei.com.
For more information, contact UGE at:
+1 917 720 5685
Neither 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 this release.
Statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for UGE's products and the availability of funding. These forward-looking statements are made as of the date hereof and UGE does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from UGE's expectations and projections.
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