ANNOUNCES CLOSING OF OVER-SUBSCRIBED SECOND AND FINAL TRANCHE OF NON-BROKERED PRIVATE PLACEMENT
Sharc International Systems Inc. (SHRC.C) has closed the second and final tranche of a non-brokered private placement, raising gross proceeds of $1,578,500 from the issuance and sale of 3,946,250 units at a price of 40 cents per unit. No new insiders were created, nor any change of control has occurred, as a result of this private placement.
The private placement was oversubscribed and raised a total of $3,911,098 of the proposed $2.5-million private placement previously announced on April 19, 2018.
Each unit has a purchase price of 40 cents per unit, and each unit consists of one common share of the company and one non-transferable share purchase warrant.
Lynn Mueller, president and chief executive officer, commented: "I am very pleased to see the interest level of the sophisticated investors that have joined us as shareholders. Sharc has an opportunity to use this raise as a catalyst for tremendous growth. The company is positioned for phenomenal growth in the years to come. Keep your eyes open: The Sharc is in the waste water near you."
Each warrant will entitle the holder to acquire one common share at an exercise price of 60 cents for a period of 24 months from the closing date of the private placement. In the event that the company's common shares trade at a closing price on the exchange of greater than $1 per share for a period of 10 consecutive trading days at any time after the closing date, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such case, the warrants will expire on the 30th day after the date hereafter referred to as the eligible acceleration date on which such notice is given by the company.
These common shares and warrants issued under the first tranche of the private placement will be subject to a four-month-and-one-day resale restriction expiring Sept. 11, 2018, and the second tranche of the private placement will be subject to a four-month-and-one-day resale restriction expiring Oct. 7, 2018.
All securities issued in the financing will be subject to a statutory hold period expiring four months and one day after closing of the financing. Completion of the financing is subject to a number of conditions, including, without limitation, receipt of all regulatory approvals, including approval of the Canadian Securities Exchange.
In connection with the private placement, the company paid a commission on a portion of the private placement to certain eligible finders. The total commission paid on the two tranches consisted of a cash payment of $93,760 and the issuance to the finder of 234,400 warrants. Each finder's warrant has the same terms as the warrants issued under the private placement.
The company intends to use the net proceeds of the private placement for the advancement of the company's projects that are currently in the pipeline and will also be evaluating new project opportunities as part of its business model.
About Sharc International Systems Inc.
Sharc International Systems is a world leader in thermal heat recovery. Sharc systems recycle thermal energy from waste water, generating one of the most energy-efficient and economical systems for heating, cooling and hot water preheating for commercial, residential and industrial buildings.