Mr. Michael Minder reports
ZECOTEK INCREASES NON-BROKERED PRIVATE PLACEMENT TO $1.8 MILLION AND CLOSES FIRST TRANCHE OF $1.5 MILLION
Zecotek Photonics Inc. has increased the previously announced non-brokered private placement by $300,000. The company is offering five million units of the company at a price of 36 cents per unit for gross proceeds of $1.8-million.
The company also announces it has closed on the first tranche of the non-brokered private placement announced on Sept. 18, 2012. The company has sold 4.28 million units of the company at a price of 36 cents per unit for gross proceeds of $1.54-million.
Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at an exercise price of 50 cents per common share at any time on or before the 24-month anniversary of the closing of the offering. The warrant exercise period will automatically accelerate if the common shares of the company trade above $1 for a period of
10 consecutive trading days.
Net proceeds from the funds raised will be used to complete licensing agreements and technology transfer for commercialization in the company's three operating divisions, to build and maintain patents of the Internet protocol portfolio, and for general working capital purposes. All shares and warrants are subject to a four-month hold period.
Pursuant to the financing, the company will pay finders' fees of $126,000 and issued 350,000 non-transferable finders' warrants. Each finder's warrant entitles the holder to purchase one share at 50 cents for a period of 24 months after the date the private placement closes. All shares and warrants are subject to a four-month hold period expiring on Feb. 11, 2012.
We seek Safe Harbor.
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