Zinc8 Energy Solutions (CSE:ZAIR) told investors it plans to raise gross proceeds of up to $5 million in a non-brokered private placement of 333,333,333 common shares at $0.015 each.
The company said in a statement that the funds will be used to finance its operations, including research and development and the advancement of its business plan.
It intends to complete the private placement in tranches, with the first tranche closing as soon as possible after it received a lead order for $2 million, consisting of 133,333,333 shares. For the remaining $3 million, it said it intends to give existing shareholders priority for their subscriptions.
Given the company's circumstances, it said its independent directors determined that completion of the private placement was in the best interests of the company and that it was not feasible to obtain securityholder approval in a timely manner, relying instead on certain exceptions in the policies of the Canadian Securities Exchange.
Zinc8 is focused on developing and commercializing its low-cost, long-duration Zinc8 Energy Storage System (ESS) technology for utilities, microgrids, and commercial and industrial markets. The mass storage system offers both environmental and efficiency benefits.
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