TORONTO, ON / ACCESSWIRE / March 7, 2017 / Xylitol Canada Inc. (TSX-V: XYL) (OTC PINK: XYLTD) ("Xylitol" or the "Corporation") is pleased to announce that, effective at the open of markets on March 6, 2017, its common shares were consolidated on the basis of one new common share for every five common shares issued and outstanding, as previously announced by press releases on November 3, 2016, and February 28, 2017 (the "Consolidation").
Xylitol is also pleased to announce that it has closed the first tranche of its previously announced non-brokered private placement offering today resulting in the issuance by the Corporation of 14,587,865 common shares (the "Common Shares") at a subscription price of $0.12 per share (post-Consolidation) for aggregate gross proceeds of $1,750,543 (the "Offering").
In connection with the Offering, Xylitol paid $87,092.64 in finder's fees and issued 1,167,029 broker warrants (the "Broker Warrants") to a finder of subscribers in the Offering. Each Broker Warrant entitles the holder thereof to purchase one Common Share at an exercise price of $0.12 for period of 24 months from the date of issuance.
All securities issued pursuant to the Offering are subject to a four month hold period expiring July 8, 2017.
The Corporation intends to use the proceeds for general and working capital purposes.
"The new equity proceeds solidifies our continued progress in our restructuring and begins to properly capitalize the balance sheet to now build and transform our business in 2017. On behalf of our team at Xylitol, we thank all the investors for participating in this Offering," said Steven Haasz, Chief Executive Officer.
A director of the Corporation subscribed for $10,000 worth of common shares in the Offering. Participation by a director in the Offering is considered to be a "related party transaction" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101, as neither the fair market value of the securities being issued to insiders, nor the consideration being paid by such insiders, exceeds 25% of the Corporation's market capitalization.
About Xylitol Canada Inc.
Xylitol Canada operates two business units that address the growing xylose and xylitol markets. Xylitol Canada's consumer packaged goods division is based in Denver, Colorado, and has grown from under $500,000 in revenue in 2010, to over $8,600,000 in 2014. Xylitol Canada operates a 50,000 square foot xylitol facility where it produces and packages a full catalog of natural sugar free products, most notably its natural sugar alternatives. Through this Denver based facility, the Company services major retail customers, such as Loblaws, Whole Foods, Costco, Sprouts, and many others.
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 in 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, and 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.
SOURCE: Xylitol Canada Inc.