TORONTO, ON / ACCESSWIRE / November 3, 2016 / Xylitol Canada Inc. (TSXV: XYL) ("Xylitol" or the "Corporation") is pleased to announce that it intends to complete a private placement (the "Financing") for gross proceeds of up to CAD $3,000,000. Prior to completion of the Financing, Xylitol will complete a share consolidation on the basis of one new common share for every five common shares currently issued and outstanding (the "Consolidation"). The Consolidation was approved by shareholders at the Corporation's annual general and special meeting held on September 13, 2016.
The Financing will include an issuance of common shares of Xylitol (the "Common Shares") at a price per share of $0.12 on a post-Consolidation basis resulting in the issuance of up to 25,000,0000 Common Shares (post-Consolidation). Xylitol anticipates that the Financing will include an over-allotment option equal to up to 20% of the total Common Shares sold being 5,000,000 Common Shares. The Common Shares will be subject to a hold period of four months a day from the date of issuance in accordance with applicable securities laws. The Financing is expected to close in multiple tranches.
Further to Xylitol's press release of October 7, 2016 announcing a shares for debt transaction, 10,361,226 common shares were issued pursuant to the previously announced transaction and are subject to a hold period expiring on March 2, 2017.
About Xylitol Canada Inc.
Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada's business strategy is to leverage novel proprietary technology and processes to become North America's premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.
For more information about Xylitol please contact:
Steven Haasz
CEO and a director of Xylitol Canada Inc.
416.804.8231
[email protected]
Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Completion of the Consolidation and the Financing are subject to a number of conditions, including but not limited to, TSXV acceptance. There can be no assurance that the Consolidation or the Financing will be completed as proposed or at all. The TSXV has in no way passed upon the merits of the Consolidation or the Financing and has neither approved nor disapproved the contents of this press release.
Statements made in this press release include forward-looking statements that involve risks and uncertainties. These statements relate to future events and reflect management's current expectations and assumptions. A number of factors could cause actual events to differ materially from the events discussed in the forward-looking statements, such as completion of the Consolidation, completion of the minimum Financing, and TSXV approval. These forward-looking statements are made as of the date hereof and the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances.
SOURCE: Xylitol Canada Inc.