Zinc8 Energy Solutions Inc. (CSE:ZAIR) said it has agreed to increase the size of its marketed private placement offering to total gross proceeds of up to $13,500,000 due to increased demand.
The company said the net proceeds from the offering will be used for further research and development and commercialization of it’s patented zinc-air battery system, business development, marketing, capital investments and general working capital requirements.
Zinc8 noted that the offering, which has been priced at $0.54 per share, is being conducted on a “best efforts” basis and is being led by Raymond James and Haywood Securities as co-lead agents and co-book runners, on behalf of a syndicate of agents which includes Stifel Nicolaus Canada and Gravitas Securities.
READ: Zinc8 Energy Solutions announces marketed private placement offering to raise up to $10M
The company has agreed to grant the agents an option, exercisable in whole or in part at their sole discretion, to increase the size of the offering by up to an additional $2,025,000. If the agents’ option is exercised in full, the total gross proceeds to the company will be approximately $15,525,000.
The closing of the Offering is anticipated to occur on February 24, 2021, and is subject to customary closing conditions, including, but not limited to, the execution of an agency agreement and the receipt of all necessary regulatory approvals, including the approval of the securities regulatory authorities and the Canadian Securities Exchange (CSE).
Shares issued in the offering will be subject to a 4 month and one day hold period pursuant to applicable Canadian securities laws.
Zinc8 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 and the company is striving to meet the growing need for secure and reliable power.
Contact the author at jon.hopkins@proactiveinvestors.com