MISSISSAUGA, ON / ACCESSWIRE / March 22, 2016 / Pioneering Technology Corp. (TSXV: PTE) (the "Company") is pleased to announce that it has closed the second and final tranche of the non-brokered private placement financing announced on March 1, 2016 (the "Private Placement"). The Private Placement raised gross proceeds of $1.5 million.
Pursuant to the second tranche of the Private Placement, the Company issued an additional 5,320,000 units (each, a "Unit"), at a price of $0.125 per Unit, for gross proceeds of $665,000. Each Unit consists of one common share of the Company (each, a "Common Share") along with one-half of one Common Share purchase warrant (each, a "Warrant"). Each whole Warrant may be exercised for one additional Common Share at a price of $0.25 per Common Share until September 21, 2017.
The Units were issued pursuant to exemptions from prospectus requirements of applicable securities legislation. Securities issued pursuant to the Private Placement are subject to a hold period that expires on July 22, 2016.
Insiders of the Company participated in the Private Placement. Subscriptions from insiders are considered to be related party transactions within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 ("MI 61-101"). The Company relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation.
The proceeds of the Private Placement will be used by the Company for the purchase of inventory, working capital, and repayment of indebtedness.
5% cash finder's fees of up to $39,150 were paid on a portion of the financing and 254,080 broker warrants were issued. Each broker warrant entitles the holder thereof to purchase one common share in the capital of the Company for $0.25 per Common Share on or before September 21, 2017.
For further information contact:
Kevin Callahan, President & CEO at (905) 712-2061 ext. 222.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
(Not for dissemination in the United States of America)
SOURCE: Pioneering Technology Corp.