EDMONTON, ALBERTA--(Marketwired - July 29, 2016) - Radient Technologies Inc. (TSX VENTURE:RTI) (the "Corporation" or "Radient") announced today that it has released its financial results for the fourth quarter and fiscal year ended March 31, 2016. The audited financial statements, Management's Discussion and Analysis, and the CEO & CFO certifications for the year ended March 31st, 2016 are available on www.SEDAR.com.
Current Financial Situation
The Corporation is looking to secure additional financing arrangements in order to fund its current working capital deficit and to fund its continuing operations and corporate administration costs so as to continue as a going concern.
In order to minimize expenses and cash requirements the Corporation has idled its plant operations. The Corporation expects to be able to recommence plant operations after securing additional financing. The Corporation is also looking at various strategic options on its financing needs and is working with its lenders to manage the payment schedules of outstanding notes.
Accordingly, Radient is announcing a non-brokered private placement of up to 70,000,000 units (the "Units") of the Corporation at a price of $0.10 per Unit for aggregate proceeds of up to $7,000,000 (the "Offering"), subject to regulatory approval. Each Unit shall be comprised of one common share of the Corporation (a "Common Share") and one half Common Share purchase warrant (each whole warrant, a "Unit Warrant"), with each whole Unit Warrant entitling the holder to subscribe for one additional Common Share at a price of $0.25 per Common Share until the date that is 42 months from the date of issuance. It is anticipated that the Offering will be closed in multiple tranches.
For the financing, the Corporation may pay a finder's fee comprised of a cash commission of up to 10% of the gross proceeds of the Offering and finder warrants (the "Finder Warrants") of up to 10% of the number of Units sold pursuant to the Offering, subject to the policies of the TSX Venture Exchange. Each Finder Warrant shall be exercisable for one Common Share at a price of $0.10 per Common Share until the date that is up to 24 months from closing of the Offering. Radient plans to use the proceeds of the Offering for product development, capital expenditures and general working capital purposes.
The Offering is subject to the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a statutory four-month hold period.
Radient extracts natural compounds from a range of biological materials using microwave assisted processing ("MAP™"), a patented technology platform which provides superior customer outcomes in terms of ingredient purity, yield, and cost. From its 20,000 square foot manufacturing plant in Edmonton, Alberta, Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health, personal care and biofuel markets. Visit www.radientinc.com for more information.
Information set forth in this news release contains forward-looking information and statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The terms and phrases "goal", "commitment", "guidance", "expects", "would", "will", "continuing", "drive", "believes", "indicate", "look forward", "grow", "outlook", "forecasts", "intend", and similar terms and phrases are intended to identify these forward-looking statements, including but not limited to statements regarding recommencing plant operations, securing future financing agreements or strategic options, the completion of the tranches of the Offering, receipt of approvals related to the Offering and the use of the proceeds of the Offering. The Corporation cautions that all forward looking information and statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Corporation's control. Such factors include, among other things: risks and uncertainties relating to the Corporation's ability to complete the proposed Offering or any additional tranches and receipt of approvals related to the Offering. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, the Corporation undertakes no obligation to publicly update or revise forward-looking information.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.
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.