insider support?? 2020-07-22 09:00 ET - News Release
Montreal, Quebec--(Newsfile Corp. - July 22, 2020) - Peak Positioning Technologies Inc. (CSE: PKK) (OTCQB: PKKFF) ("Peak" or the "Company") today announced that it has sold 50,000,000 units ("Units") for gross proceeds of $1,000,000, representing the first tranche of a non-brokered private placement where the Company will sell a total of up to 100,000,000 Units for gross proceeds of $2,000,000 ("Offering"). Each Unit is priced at $0.02 and is composed of one common share and one common share purchase warrant ("Warrant"), each Warrant entitling the holder to acquire one common share at a price of $0.025 for a period of 24 months following the closing date.
The common shares issued in connection with the private placement are subject to a hold period of four months and one day after the closing date. The proceeds of the Offering will be used for working capital purposes and to help fuel the Company's expansion plan.
Pursuant to Multilateral Instrument 61-101 respecting protection of minority security holders in special transactions ("MI 61-101"), the Financing constitutes a "related party transaction" as certain directors and officers of Peak (the "Related Party") subscribed to securities. In reviewing the applicable valuation requirements under MI 61-101, Peak has determined that the exemption set out in subsection 5.5 (a) of MI 61-101 is applicable since the aggregate consideration to be paid by the Related Party does not exceed 25% of the market capitalization of Peak at the date hereof. In addition, subsection 5.7(a) provides that a transaction meeting such criteria is also exempt from the minority shareholder approval requirement. The board of directors of Peak has unanimously approved the Financing. Peak has not filed a material change report 21 days prior to the closing of the Financing as participation of insiders had not been established at that time.