TORONTO, ONTARIO--(Marketwired - July 11, 2016) -
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EEStor Corporation (TSX VENTURE:ESU) ("EEStor" or the "Company") announced that it has completed the balance of its previously announced non-brokered private placement raising an additional $449,750 ($3.0 million in total from the two tranches) from the sale of 2,998,333 units (20 million units in total from the two tranches). Each unit was priced at $0.15 and consisted of one common share and one common share purchase warrant. Each common share purchase warrant entitles the holder to acquire one additional common share at a price of $0.30 for a period of 36 months from the closing date of the offering. All securities issued pursuant to the second tranche of the private placement are subject to a 4-month hold period in Canada expiring November 12, 2016 and may be subject to further hold periods in other jurisdictions where they were sold.
Ian Clifford, founder and CEO of the Company stated: "It is an exciting achievement to finally close out this round of financing for the company. It has been a challenging market to raise funds and I want to specifically thank all the new (and longstanding) investors who have supported us during this process. We have a lot of exciting work to do and it is reassuring to have the capital in place to get the work done."
In connection with the placement, and subject to regulatory approval, EEStor will pay cash finder's fees of $804 and issue 5,360 finder's warrants having the same terms as the common share purchase warrants issued under the offering. Net proceeds from the private placement will be used to advance licensing discussions, further the Company's polymer program, reduce indebtedness and for general working capital purposes.
About EEStor Corporation
The Company's mission is to be the provider of leading edge electrical energy storage and related capacitor technologies. The Company operates on the principle and belief that a fundamental breakthrough in energy storage will be the catalyst for positive environmental and economic change globally. The Company's current business strategy is focused on licensing and partnership opportunities across a broad spectrum of industries and applications building on its recent technology achievements related to capacitors.
The Company holds an approximate 71.3% as-converted equity and voting interest and certain technology rights to a solid-state capacitor and related energy storage technologies currently under development by EEStor, Inc. The acquisition of the controlling interest in EEStor Inc. aligned the businesses of both companies and now allows EEStor Corporation to benefit from other revenue streams that should be available to EEStor, Inc., including applications throughout the capacitor industry and not limited to high density energy storage applications.
The Company's success depends on the commercialization of the technology developed by EEStor Inc and there is no assurance that it will be successful in the completion of the various enhancement phases to warrant the anticipated licensing opportunities in the technology. Readers are directed to the "Risk Factors" disclosed in the Company's public filings.
Neither TSX Venture Exchange 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.