RE:PP HIT TECHNOLOGIES ANNOUNCES DETAILS OF PRIVATE PLACEMENT
Hit Technologies Inc., subject to regulatory approval, including that of TSX Venture Exchange, intends to issue up to 703,125 units on a non-brokered private-placement basis at a price of 16 cents per unit for gross proceeds of up to $112,500.
Each unit will consist of one preconsolidation (as defined herein) common share of the company and one common share purchase warrant of the company, such warrant entitling the holder to acquire one additional preconsolidation (as defined herein) common share of the company at a price of 40 cents per share for a period of two years from issuance subject to acceleration. The company will be completing a consolidation on a 1:2.5 basis on or before closing of the acquisition of Carbeeza Ltd., as announced on June 24, 2020. As such, following the completion of the acquisition, the private placement will result in 281,250 postconsolidation units at a postconsolidation price of 40 cents each and 281,250 postconsolidation share purchase warrants with a postconsolidation exercise price of $1 per share.
The company plans to use the funds from the private placement to finance the acquisition, continuing operations and for general working capital purposes. All securities of the company issued in connection with the above transactions will be subject to a four-month statutory hold period.
The company continues to work to complete the acquisition. Closing of the acquisition is subject to a number of conditions, including due diligence, the entering into of definitive agreements, the completion of the financing, receipt of all required shareholder, regulatory and third party consents, including exchange approval, and satisfaction of other customary closing conditions. The acquisition cannot close until the required approvals are obtained. The company received an extension until June 30, 2021, to hold its annual general meeting for the year 2020. There can be no assurance that the acquisition will be completed as proposed or at all. Trading in the common shares of the company will remain halted pending further filings with the exchange.