Zinc8 Energy Solutions Inc (CSE:ZAIR) said it has completed a non-brokered private placement under which it has issued an aggregate of 14,123,500 units at a price of $0.20 each for gross proceeds of $2,824,700.
The company said the proceeds of the private placement will be used for working capital expenditures including operating expenses, research and development, pursuing advancement of its business plan, salaries and wages, investor relations and marketing fees, and professional fees.
Each unit issued is comprised of one common share in the capital of the company and one non-transferable share purchase warrant. The warrants are exercisable for a period of two years at a price of $0.30 in the first year from the date of issuance and at a price of $0.40 for the balance of the term.
READ: Zinc8 Energy Solutions ends 3Q with working capital balance of $4M
The company paid finder's fees of $6,740 and issued 21,700 share purchase warrants to certain finders in connection with the private placement. The broker's warrants were issued on the same terms as the placement warrants.
Certain insiders of the company purchased a total of 5,100,000 units under the private placement, which is a "related party transaction" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (MI 61-101).
All securities issued under the private placement are subject to a hold period of four months and a day from closing in accordance with securities laws.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the Unites States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a US person, unless an exemption from registration is available.
Zinc8 Energy Solutions focuses on developing and commercializing its low-cost, long-duration ZESS for utilities, microgrid, and Commercial & Industrial markets.
By using the patented ZESS as a standalone or an enabling technology, it allows opportunities for peak demand reduction, time-of-use arbitrage, and participation in both the value stacking programs and the distributed long-duration energy storage space, all in conjunction with the opportunity for a significant reduction in carbon footprint.
The long duration (8-100+ hours) ZESS has no fire and explosion risk, has no capacity fade over extensive lifetime, and offers complete charge operational flexibility.
Contact the author at jon.hopkins@proactiveinvestors.com