TORONTO, March 9, 2017 /CNW/ - Kontrol Energy Corp. (CSE: KNR) (the "Company") announced that it has closed the previously announced non-brokered private placement (the "Offering") oversubscribed for aggregate gross proceeds of $555,000. Pursuant to the Offering, the Company issued 792,857 units (each a "Unit") at a price of $0.70 per Unit, with each Unit consisting of one common share and one common share purchase warrant. Each warrant will be exercisable to acquire one common share of the Company at a price of $0.85 for a period of one (1) year.
One director of the Company (the "Interested Person") subscribed for an aggregate of 72,857 Units under the Offering for aggregate cash consideration of $51,000. The participation of these parties in the offering constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on the exemptions from the formal valuation and minority approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of securities being issued to the Interested Person nor the consideration being paid by the Interested Person will exceed 25% of the Company's market capitalization. The Interested Person have no knowledge of any material information concerning the Company or its securities that has not generally been disclosed. Following the Offering, the combined direct and indirect voting interest of the Interested Person is 60%.
Proceeds from the Offering will be used for acquisition deposits and general working capital. All securities purchased under this Offering will be subject to a four month and one day hold period. Finders' fees may be payable on a portion of the Offering in accordance with the policies of the CSE. Completion of the Offering is subject to the acceptance of the CSE.
For more details, read the full news release here.
About Kontrol Energy Corp.
Kontrol Energy Corp. is a leader in energy efficiency solutions and technology. Through a disciplined mergers and acquisition strategy, combined with organic growth, Kontrol Energy Corp. provides market-based energy solutions to our customers designed to reduce their overall cost of energy while providing a corresponding reduction in Green House Gas (GHG) emissions.
Additional information about Kontrol Energy Corp. can be found on its website at www.kontrolenergy.com and by reviewing its profile on SEDAR at www.sedar.com