Gerri Greenham reports
SOLARVEST BIOENERGY INC. SUSPENDS SECOND TRANCHE OF FINANCING
Solarvest Bioenergy Inc. has suspended its previously announced private placement financing with Drashta Ventures, a United Kingdom-based impact investment fund. Under TSX Venture Exchange policy, the parties had a limited time to complete the financing, and the 30-day extension granted by the TSX-V has now expired.
As previously announced, Solarvest has already closed a first tranche of $250,000 of the anticipated $1-million placement of an aggregate four million units at a price of 25 cents per unit. Each unit issued consists of one common share and one whole warrant. Each whole warrant entitles the holder to acquire one additional common share of the company at a price of 35 cents per share for a period of two years following closing and includes an acceleration clause that is triggered by a 20-day volume-weighted average price greater than 95 cents per share. All securities issued pursuant to this tranche are subject to resale restrictions for a period of four months and one day from closing under applicable securities legislation and final approval by the TSX-V.
The balance of the financing had been anticipated to close in two or more tranches this month. Unfortunately, despite the best efforts of the parties, the remaining subscription proceeds could not be secured in a timely fashion. As a result, the parties have mutually agreed to terminate the current commitment. The parties will continue to work toward the financing, and Drashta has confirmed that it remains committed and confident that the funds will be available, although the short-term timing is difficult to predict.
About Solarvest Bioenergy Inc.
Solarvest Bioenergy is an algae technology company whose algal-based production platform provides it with an extremely flexible system capable of being adapted to produce clean energy in the form of hydrogen and health products such as omega oils in an economic and environmentally sensitive manner.
We seek Safe Harbor.
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