RE:LINK, MUST READ The President and Chief Executive Officer of the Company, Donald K. D. Baxter, participated in the Private Placement as an insider. Such participation represents a related-party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), but is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction, nor the consideration paid, exceed 25% of the Company's market capitalization. The Private Placement was approved by all of the independent directors of the Company. The number of Common Shares potentially issuable to insiders of the Company pursuant to the Private Placement (including any Common Shares issuable upon the exercise of the Warrants) represent not more than 10% of the Company's currently issued and outstanding Common Shares on a non-diluted basis.
"We are very pleased with the successful and strong closing of this offering," commented Mr. Baxter. "With validation from institutional investors and continued support from our major shareholders, AGC will continue to advance our business plan successfully and with confidence. We intentionally kept this raise small in an effort to mitigate dilution; however, AGC intends to target a significantly larger amount in a subsequent private placement in the coming months, at a higher share price.
"Our team is eager to capitalize on the broader recognition of AGC's 'Made-in-USA' CSPG, specifically engineered for Li-ion batteries - which we believe will set the industry standard for environmental sustainability and responsibility, while intending to be a bottom-quartile cost producer."