VANCOUVER, BC, Dec. 21,
2023 /CNW/ - Principal Technologies Inc.
(the "Company") (TSXV: PTEC), is pleased to
announce the closing of the second tranche ("Tranche 2") of
its previously announced non-brokered private placement (the
"Offering"). Under Tranche 2 of the Offering, the Company
issued 6,823,333 common shares (the "Shares") at
$0.15 per Share for gross proceeds of
$1,023,500. The total raised under
the Offering to date is $1,373,975.
The Company also announces that it has increased the size of the
Offering, as previously described in the Company's news releases
dated October 6, 2023 and
November 21, 2023. The Company now
intends to issue up to 10,700,000 Shares at a price of $0.15 per Share for total gross proceeds of
approximately $1,600,000 subject to
final approval from the TSX Venture Exchange ("TSXV"). The
Company first announced the Offering for up to 6,000,000 common
shares of the Company for aggregate gross proceeds of up to
$900,000.
The Company has received approval from the TSXV for an extension
and intends to close a third and final tranche of the Offering on
or before January 17, 2024. The
Company has now received additional offers to participate in the
third tranche of the Offering.
"We are exceptionally grateful for the support of both our
existing and new shareholders to allow us to close this
oversubscribed private placement," commented Jerry Trent, Chief Executive Officer of the
Company. "We are now entering a new and exciting phase of our
development as we advance discussions for our first major European
healthcare acquisition. Our pipeline has never been stronger as we
search for profitable, unique targets. We look forward to updating
the market in due course."
Finder's fees in connection with the Offering, include two
components, namely cash finder's fees (the "Cash Finder's
Fees") and finder's warrants (the "Finder's Warrants").
The Cash Finder's Fee shall be equal to eight percent (8%) of the
amount provided to the Company pursuant to a financing or
investment agreement entered into between the Company and a
Designated Investor for financing or an investment in exchange for
securities or other equity in the Company (the "Investment
Agreement"). The Finder's Warrants shall be equal to eight
percent (8%) of the number of securities received by the Designated
Investor. Each non-transferable Finder's Warrant entitles the
holder to purchase one common share (a "Share") of the
Company for a period of twenty-four (24) months from the date of
issuance at a price of CAD$0.20 per
Share. In connection with the closing of Tranche 2, Cash Finder's
Fees of $33,720 were paid in cash and
a total of 224,800 Finder's Warrants are issuable.
The Company intends to use the net proceeds of the Offering for
working capital in order to secure a major asset and for general
corporate purposes. All currency in this news release is
denominated in Canadian dollars.
All securities issued pursuant to the Offering, and any Shares
that may be issuable on exercise of any such securities, will be
subject to a statutory hold period expiring four months and one day
from the date of issuance of such securities.
ON BEHALF OF THE BOARD
Jerry Trent, Chief Executive
Officer
Principal Technologies Inc.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-looking
statements:
This press release contains "forward-looking information" and
"forward-looking statements" within the meaning of applicable
securities laws. This information and statements address future
activities, events, plans, developments and projections. All
statements, other than statements of historical fact, constitute
forward-looking statements or forward-looking information. Such
forward-looking information and statements are frequently
identified by words such as "may," "will," "should," "anticipate,"
"plan," "expect," "believe," "estimate," "intend" and similar
terminology, and reflect assumptions, estimates, opinions and
analysis made by management of the Company in light of its
experience, current conditions, expectations of future developments
and other factors which it believes to be reasonable and relevant.
Forward-looking information and statements involve known and
unknown risks and uncertainties that may cause the Company's actual
results, performance and achievements to differ materially from
those expressed or implied by the forward-looking information and
statements and accordingly, undue reliance should not be placed
thereon.
Risks and uncertainties that may cause actual results to vary
include but are not limited to the availability of financing;
fluctuations in commodity prices; changes to and compliance with
applicable laws and regulations, including environmental laws and
obtaining requisite permits; political, economic and other risks;
as well as other risks and uncertainties which are more fully
described in our annual and quarterly Management's Discussion and
Analysis and in other filings made by us with Canadian securities
regulatory authorities and available at www.sedar.com. The Company
disclaims any obligation to update or revise any forward-looking
information or statements except as may be required.
SOURCE Principal Technologies Inc.
