Electrovaya Announces Private Placement for Proceeds of up to $700,000
17 May 2018 - 7:01AM
Not for distribution in the United
States newswire services or for dissemination in the United
States
Electrovaya Inc. (TSX:EFL) (OTCQX:EFLVF)
(“
Electrovaya”, or the “
Company”)
is pleased to announce that it intends to complete a non-brokered
private placement offering of up to 4,666,667 units (the
“
Units”) at a price of $0.15 per Unit for
aggregate gross proceeds of up to $700,000. Each Unit will consist
of one common share of the Company (each, a “
Common
Share”) and one-half of one common share purchase warrant
(each, a “
Unit Warrant”). Each
whole Unit Warrant will entitle the holder thereof to acquire one
Common Share at a price of $0.20 for a period of 36 months from the
date of issuance. The private placement is expected to close on or
about May 24, 2018.
The proceeds of the private placement will be
used for general working capital purposes. The private placement is
subject to the approval of the Toronto Stock Exchange.
It is expected that certain directors and
officers of the Company will purchase Units in connection with the
private placement. As such, the private placement constitutes a
“related party transaction” for Electrovaya within the meaning of
that term pursuant to Multilateral Instrument 61-101 of the
Canadian Securities Administrators - Protection of Minority
Security Holders in Special Transactions (“MI
61-101”). MI 61-101 provides that related party
transactions are, in the absence of an exemption therefrom, subject
to the requirement to obtain a formal valuation for the subject
matter of the related party transaction and minority shareholder
approval of the related party transaction (which approval shall
exclude any votes attached to Common Shares held by the
participating related party). The Company is relying on the
exemptions from the formal valuation and minority approval
requirements of MI 61-101 in respect of the private placement
provided for in sections 5.5(a) and 5.7(1)(a) of MI 61-101 - Fair
Market Value Not More than 25% of Market Capitalization.
Also pursuant to MI 61-101, the private
placement is subject to enhanced disclosure, to be included in a
material change report filed in connection therewith. The material
change report will be filed less than 21 days prior to the expected
closing of the private placement. Management of the Company
believes this is reasonable and necessary in the circumstances, as
it is important for the Company to receive the proceeds from the
private placement in a timely manner.
For more information, please
contact
North America:Richard
HalkaChief Financial OfficerElectrovaya Inc.Telephone:
1.905.855.4618Email: ir@electrovaya.com
About Electrovaya Inc.
Electrovaya Inc. (TSX:EFL) (OTCQX:EFLVF)
designs, develops and manufactures proprietary Lithium Ion Super
Polymer® batteries, battery systems, and battery-related products
for energy storage, clean electric transportation and other
specialized applications. Headquartered in Ontario, Canada,
Electrovaya is a technology focused company with extensive IP,
supplying leading global customers.
To learn more about how Electrovaya is powering
mobility and energy storage, please explore
www.electrovaya.com.
Forward-Looking Statements
This press release contains forward‐looking
statements, including statements that relate to, among other
things, the completion of the private placement and the use of
proceeds thereof, and can generally be identified by the use of
words such as “may”, “will”, “could”, “should”, “would”, “likely”,
“possible”, “expect”, “intend”, “estimate”, “anticipate”,
“believe”, “plan”, “objective” and “continue” (or the negative
thereof) and words and expressions of similar import. Although the
Company believes that the expectations reflected in such
forward‐looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements. Certain material factors or assumptions are
applied in making forward‐looking statements, and actual results
may differ materially from those expressed or implied in such
statements. Important factors that could cause actual results to
differ materially from expectations include but are not limited to:
market conditions and demand for the Company’s securities; general
business and economic conditions (including but not limited to
currency rates and creditworthiness of customers); Company
liquidity and capital resources, including the availability of
additional capital resources to fund its activities; level of
competition; changes in laws and regulations; legal and regulatory
proceedings; the ability to adapt products and services to the
changing market; the ability to attract and retain key executives;
and the ability to execute strategic plans. Additional information
about material factors that could cause actual results to differ
materially from expectations and about material factors or
assumptions applied in making forward‐looking statements may be
found in the Company’s most recent annual information form under
the heading “Risk Factors” as well as in other public disclosure
documents filed with Canadian securities regulatory authorities.
The Company does not undertake any obligation to update publicly or
to revise any of the forward‐looking statements contained in this
document, whether as a result of new information, future events or
otherwise, except as required by law.
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