MGX Renewables Inc. (CSE: MGXR) is pleased to announce that it has closed its offering of units for gross proceeds of $500,000 (rounded) on the sale of 8,333,329 units at $0.06 per unit, as originally announced on August 27, 2019. Each unit consists of one common share and one transferable share purchase warrant. The warrants are exercisable for a period of two years at a price of $0.08 in the first year from the date of issuance and at a price of $0.12 for the balance of the term. All securities issued under the private placement have a hold period of 4 months and one day from closing. The financing proceeds will be used for the Company’s working capital.
Michael Reimann and Dave Hodge, directors of the Company participated in the offering by purchasing an aggregate of 2,283,333 units. Accordingly, the offering constitutes a related-party transaction under Multilateral Instrument 61-101. Because the Company’s shares trade only on the Canadian Exchange, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(b) of MI 61-101. These directors had no knowledge of any material information concerning the Company that had not been generally disclosed. After giving effect to the offering 47,123,529 common shares are outstanding. Michael Reimann’s aggregate ownership in the Company is approximately 1.479 (undiluted) of the Company’s issued and outstanding shares and Dave Hodge’s aggregate ownership in the Company is approximately 4.79% (undiluted) of the Company’s issued and outstanding shares.
About MGX Renewables
MGXR 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. MGXR strives to meet the growing need for secure and reliable power.