EDMONTON, ALBERTA--(Marketwired - Feb. 28, 2017) - Radient Technologies Inc. (TSX VENTURE:RTI) (the "Company") announced today that it has released its financial results for the third quarter of its fiscal year ended March 31, 2017. The unaudited financial statements, Management's Discussion and Analysis, and the CEO & CFO certifications for the nine-month period ended December 31, 2016 are available on www.SEDAR.com.
Key highlights for Q3 2017
a) The Company has been successful in improving its working capital position over the quarter that turned into a surplus position. The working capital and liquidity of the Company significantly improved on the back of a successful completion of a non-brokered private placement of $5 million in December 2016.
In addition, in terms of subsequent events, the Company also recently announced (Feb 13, 2017) a brokered private placement, with Canaccord Genuity acting as Agent, of up to 13,333,333 units (the "Units") of the Corporation at a price of $0.45 per Unit for aggregate proceeds of up to $6 million, subject to regulatory approval. This 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. This is further expected to strengthen the balance sheet and liquidity of the Company to provide growth capital for additional strategic initiatives.
b) The Company announced a major initiative in the Cannabinoid space though the application of its proprietary high-throughput extraction technology in meeting the fast-growing demand for quality cannabinoid extracts. As a part of this initiative, the Company signed a memorandum of understanding ("MOU") with Aurora Cannabis (TSX- ACB) followed by the formation of a joint venture to evaluate an exclusive partnership for the Canadian market with regard to the joint development and commercialization of superior and standardized cannabinoid extracts. As part of the MOU, Aurora agreed to invest up to $2 million into Radient by means of a convertible debenture (the "Debenture") and followed up by acting as lead investor in the subsequent brokered private placement for $1.2 million. The Company also filed its first application for a Controlled Drugs and Substances Dealers license to serve the Cannabinoids medical market.
c) In the ingredients space, the Company entered into several manufacturing agreements with a global leader in the development, manufacturing and marketing of innovative ingredients for the cosmetic and personal care industry. Discussions with this partner are continuing towards a broader, long-term supply relationship comprising multiple additional finished ingredients with more being considered.
Denis Taschuk, President and CEO of Radient, stated - " The last quarter has been a major turnaround for Radient with completion of successful financings and strategic partnerships in the fast growing Cannabinoid market. We are also pleased with our strengthening partnership in the ingredients space with a current global leader that is expected to grow and add value. We believe our unqiue MAP™ technology will create significant value in these areas, including the Cannabinoid industry, that has a latent demand for such extraction processes for purity and yield. With access to growth capital, we are looking forward to developing additional partnerships in this dynamic industry."
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.
SOURCE Radient Technologies Inc.