ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - April 11, 2017) -
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Kraken Sonar Inc. (TSX VENTURE:PNG) ("Kraken" or the "Company") is pleased to announce that effective April 11, 2017, it has closed a non-brokered private placement offering (the "Offering") comprised of 11,806,660 units (the "Units") at a purchase price of $0.18 per Unit for aggregate gross proceeds of $2,125,199. Each Unit consisted of one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"), with each Warrant exercisable to acquire one common share of Kraken at $0.30 for a period of 24 months from the date of issuance. In connection with the Offering, the Company paid cash finder's fees of $12,600 and issued 191,333 finders warrants. Each finders warrant is exercisable to acquire one common share of Kraken at $0.18 for a period of 24 months from the date of issue. All proceeds raised from the sale of the Units will be used by Kraken for the build of additional inventory for customer sea trials and general corporate and working capital purposes.
The securities issued pursuant to the Offering and are subject to a four-month statutory hold period commencing from the date of issuance. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.
"We are very pleased with the interest from investors in Kraken's future as indicated by the oversubscription of the private placement," said Karl Kenny, President and CEO of Kraken. "The financing provides additional funds to build inventory for customer evaluations, enhance business development and increase our international distribution."
"Kraken recently exhibited at the Ocean Business conference in the UK and it was perhaps the best trade show we have attended to date. Significant interest was shown in our new SeaVision™ 3D underwater laser imaging system; the AquaPix® Synthetic Aperture Sonar, our KATFISH™ high speed towed SAS system as well as our new underwater robotic products. We will be following up with many international agents and distributors who want to represent our products in their countries. We expect to see increased revenue resulting from these new sales channels."
ABOUT KRAKEN SONAR INC.
Kraken Sonar Inc. (TSX VENTURE:PNG) is a marine technology company, founded in 2012, that is dedicated to the production and sale of software-centric sensors and underwater robotic systems. The company is headquartered in St. John's, Newfoundland with offices in Dartmouth, Nova Scotia; Bremen, Germany; and Fairfax, Virginia. For more information, please visit www.krakensonar.com and www.krakenrobotik.de
Certain information in this news release constitutes forward-looking statements. When used in this news release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect the Company's current views with respect to future events based on certain material factors and assumptions and are subject to certain risks and uncertainties, including without limitation, changes in market, competition, governmental or regulatory developments, general economic conditions and other factors set out in the Company's public disclosure documents. Many factors could cause the Company's actual results, performance or achievements to vary from those described in this news release, including without limitation those listed above. These factors should not be construed as exhaustive. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this news release and such forward-looking statements included in, or incorporated by reference in this news release, should not be unduly relied upon. Such statements speak only as of the date of this news release. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the TSX Venture Exchange Inc. nor its Regulation Services Provide (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.