Visionstate Corp.
TSX VENTURE : VIS

Visionstate Corp.

October 06, 2016 16:21 ET

Visionstate Announces Closing of Private Placement

EDMONTON, ALBERTA--(Marketwired - Oct. 6, 2016) - Visionstate Corp. (TSX VENTURE:VIS) ("Visionstate") is pleased to announce that it has received TSX Venture Exchange final acceptance with respect to a private placement ("Private Placement") of 15,000,000 common shares of the Corporation ("Common Share") at a price of $0.01 per Common Share for gross proceeds of $150,000 announced on August 23, 2016. The pricing of the Private Placement was made in reliance on the temporary relief measures established by the TSX Venture Exchange Bulletin dated April 7, 2014. The price per common share has been set at the last trading price on the TSX Venture Exchange before the issuance of this press release.

In connection with the Private Placement, Visionstate has relied on the existing security holders exemption as well as other available prospectus exemptions. For those investors relying upon the exemption for existing security holders, the aggregate acquisition cost to a subscribing shareholder of all securities of Visionstate did not exceed $15,000 in the previous 12 months, unless that shareholder obtained advice regarding the suitability of the investment from a registered investment dealer in the subscriber's jurisdiction. The offer to purchase Common Shares was available to all security holders of Visionstate who held Common Shares on the record date of August 22, 2016. Shareholders resident in Ontario, Newfoundland and Labrador, and countries other than Canada needed to meet local jurisdiction requirements to participate. If Visionstate had received total subscriptions pursuant to the existing security holders exemption which caused the Private Placement to exceed $150,000, then Visionstate would have accepted such subscriptions on a first come, first served basis.

Visionstate intends to use the proceeds from the Private Placement as follows: $100,000 for sales and marketing of CINDI; $20,000 for a sensor research and development project; and $30,000 towards general operations. There was no minimum Offering.

Pursuant to applicable Canadian securities laws, the securities issued under the Private Placement are subject to a four-month hold period from the time of closing of the Private Placement

As insiders participated in the final closing, any such subscriptions are considered to be related party transactions within the meaning of Policy 5.9 of the TSX Venture Exchange which incorporates Multilateral Instrument 61-101 ("MI 61-101")"), but are otherwise exempt from the formal valuation and minority approval requirements of MI 61-101.

Neither the 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.

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