Sparta Announces Closing of Previously Announced Non-Brokered
Private Placement of Units
Sparta Announces Closing of Previously Announced Non-Brokered
Private Placement of Units
Edmonton, Alberta CANADA, February 11, 2013 /FSC/ - Sparta Capital Ltd. (SAY - TSX Venture), is pleased to announce that it has closed the non-brokered private placement (the "Offering") previously announced on December 21, 2012. Sparta issued 18,750,000 units of the Corporation ("Units") at a price of $0.02 per Unit for gross proceeds to the Corporation of $375,000.
Each Unit is comprised of one common share ("Common Share") of the Corporation and one share purchase warrant ("Warrant") of the Corporation. Each Warrant entitles the holder thereof to acquire an additional Common Share at a price of $0.05 per Common Share for the first twelve months ("Year One") following the closing of the Offering on February 11, 2013 (the "Closing Date") and at a price of $0.10 per Common Share for the subsequent twelve month period ("Year Two"). The Warrants expire on February 11, 2015 (the "Warrant Expire Date"), unless the volume weighted average trading price of the Common Shares on the TSX Venture Exchange Inc. (the "Exchange") during the 20 business days immediately prior to the date for which such calculation is made of the Common Shares is greater than $0.09 in Year One or $0.14 in Year Two (the "Trigger Event"). If the Trigger Event occurs, the Warrant Expiry Date may be accelerated, in the Corporation's sole discretion, to 30 business days from the Trigger Event date. The Units are subject to resale restrictions imposed by applicable securities laws and the policies of the Exchange until June 12, 2013.
The proceeds of the Offering will be used by Sparta for the following purposes:
Use of Proceeds Amount ($)
1. Outstanding Accounts Payable 86,000
2. Office Expenses including Rent 20,000
3. Sales and Marketing of the Product (as defined below) 40,000
4. Inventory (Manufacturing and Assembly of the Product) 65,000
5. Audit, Professional, Transfer Agent and Listing Fees 54,000
6. General Working Capital 50,000
7. Management and Staff Compensation 60,000
TOTAL 375,000
About Sparta
Sparta is in the early commercialization stage of a fuel savings and emission reduction product, the AddecoTech Precision Fuel Additive Injector - Model SS10L (the "Product"). Sparta acquired the world-wide right to manufacture and distribution the Product in December 2009. Thereafter, Sparta completed product development and obtained third party product safety certification. The Product was developed for commercial distribution as a means to automate the process of adding fuel additive into the fuel tank of diesel engines at each refuelling.
Further information about the Product may be obtained at www.addecotech.com.
For further information related to Sparta, please contact:
Tom Brown, President, CEO
Telephone: (855) 539- 1946 Ext 99
tombrown.sk@gmail.com
Ray Ludwig, CFO, VP Operations
Telephone: (855) 539-9146 Ext 101
r.ludwig@spartacapital.com
Reader Advisory
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Corporation's current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the projected use of the proceeds of the Offering by the Corporation.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Forward-looking statements are made based on management's beliefs, estimates and opinions on the date of this press release and the Corporation undertakes no obligation to update such forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
Neither TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.
Not for distribution to United States news wire services or dissemination in the United States.
This press release is available in PDF. Please click on the following link to view the PDF file:
http://www.usetdas.com/pr/spartacapitalfeb112013.pdf
Source: Sparta Capital Ltd. (TSXV SAY) www.spartacapital.com
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