Mr. Jared Lazerson reports
MGX RENEWABLES INC. ANNOUNCES COMPLETION OF FINANCING FOR GROSS PROCEEDS OF $500,000
MGX Renewables Inc. has closed its offering of units for gross proceeds of $500,000 (rounded) on the sale of 8,333,329 units at six cents per unit, as originally announced on Aug. 27, 2019. Each unit consists of one common share and one transferable share purchase warrant. The warrants are exercisable for a period of two years at a price of eight cents in the first year from the date of issuance and at a price of 12 cents for the balance of the term. All securities issued under the private placement have a hold period of four months and one day from closing. The financing proceeds will be used for the company's working capital.
Michael Reimann and Dave Hodge, directors of the company, participated in the offering by purchasing an aggregate of 2,283,333 units. Accordingly, the offering constitutes a related party transaction under Multilateral Instrument 61-101. Because the company's shares trade only on the Canadian Securities Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(b) of MI 61-101. These directors had no knowledge of any material information concerning the company that had not been generally disclosed. After giving effect to the offering, 47,123,529 common shares are outstanding. Mr. Reimann's aggregate ownership in the company is approximately 1.479 (undiluted) of the company's issued and outstanding shares, and Mr. Hodge's aggregate ownership in the company is approximately 4.79 per cent (undiluted) of the company's issued and outstanding shares.
About MGX Renewables Inc.
MGX Renewables has assembled an experienced team to execute the development and commercialization of a dependable low-cost zinc-air battery. This mass storage system offers both environmental and efficiency benefits. The company strives to meet the growing need for secure and reliable power.
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