Shark tank deal
Bactech arranges $3-million private placement
2022-02-14 13:01 ET - News Release
Mr. Ross Orr reports
BACTECH ANNOUNCES $3 MILLION NON-BROKERED PRIVATE PLACEMENT AT PREMIUM TO MARKET PRICE
Bactech Environmental Corp. has arranged a non-brokered private placement offering of units for maximum gross proceeds of $3-million. The company has expressions of interest for the total amount of the financing.
The issue price of the Units will be $0.20 per unit. Units are comprised of (i) one (1) common share in the capital of the Company (or its successor) (hereinafter a "Share" and collectively, the "Shares"), (ii) one (1) transferable common share purchase warrant (each, a "Warrant" and collectively, the "Warrants"). Each whole Warrant shall entitle the holder thereof to acquire one (1) additional common share (each a "Warrant Share") in the capital of the Company (or its successor) at a price of $0.30 per Warrant Share until the date that is twenty-four (24) months from the Closing Date (as defined herein). And (iii) a Royalty Certificate representing the Royalty Incentive as defined below; the Royalty Certificate may be transferred subject to the approval of the Company.
Royalty Incentive
The Company will offer a royalty to participants, once the Tenguel/Ponce Enriquez facility in Ecuador, as described in the updated Feasibility Study dated January 31, 2022 (the "Feasibility Study") is fully operational. This royalty will be based upon the revenues generated by the Company's proposed Tenguel - Ponce Enriquez facility to all investors who subscribe for Units hereunder. For each $1.0 million of the Offering, the Company will offer a 0.5% royalty. The cumulative royalty payment will be limited to a maximum of twice (i.e., "200%") the original amount invested in Units (the "Royalty"). The Royalty will be represented by a certificate (the "Royalty Certificate") in the form of the Royalty Certificate included in the subscription documentation.
Assumptions, based on the updated Feasibility Study, suggest an amount of $3,532 will be paid annually to the holder of the Royalty Certificate on every tranche of $10,000 invested in the Units, until an aggregate of twice (i.e.: "200%") of the amount invested in the Units is paid as the cumulative Royalty payment maximum, subject to the Early Warrant Exercise Incentive, as described below.
The Company will increase the aggregate Royalty payments by an additional 0.50% per $1.0 million of the amount subscribed in this Offering solely for those investors who exercise their Warrants issued in connection with this Offering within six months of the Closing Date. The cumulative Royalty payment maximum will increase by the amount of warrant proceeds received pursuant to the terms of the Early Warrant Exercise Incentive.