Zinc8 Energy Solutions Inc. (CSE:ZAIR) said it has closed its previously-announced marketed private placement for total gross proceeds to the company of $15,525,000.
The company said the offering of 28,750,000 common shares, including 3,750,000 shares issued under the exercise, in full, of the agents' option, at a price of $0.54 each.
The net proceeds of the offering will be used for further research and development and commercialization of the company's patented zinc-air battery system, business development, marketing, capital investments and general working capital requirements.
READ: Zinc8 Energy agrees to increase marketed private placement offering size to total gross proceeds of up to $13,500,000 due to increased demand
The offering was conducted on a "best efforts" basis and was led by Raymond James and Haywood Securities, as co-lead agents and co-book runners, on behalf of a syndicate of agents that included Stifel Nicolaus Canada and Gravitas Securities.
The company said it paid the agents a cash commission equal to 6% of the gross proceeds of the offering and issued an aggregate of 1,725,000 compensation warrants, being 6% of the number of shares sold under the offering. Each compensation warrant is exercisable to acquire one common share of the company at an exercise price of $0.54 each until February 24, 2023, subject to adjustment in certain events.
The shares issued under the offering will be subject to a 4 month and one day hold period under 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. Zinc8 strives to meet the growing need for secure and reliable power.
Contact the author at jon.hopkins@proactiveinvestors.com