Mississauga, Ontario--(Newsfile Corp. - June 26, 2015) - Pioneering Technology Corp. (TSXV: PTE) (the "Company") announces that it intends to carry out a private placement for gross proceeds of up to $3,000,000 (the "Private Placement") and has entered into a $550,000 accounts receivable financing facility. The Company will use the proceeds of the Private Placement and the financing facility to fill growing customer orders, build inventory to support the Company’s growing business to business channels, launch two new consumer products at retail, repay existing indebtedness and for general working capital purposes.
It is anticipated that the Private Placement will consist of the issuance of units of the Company (each, a "Unit") at a price of $0.20 per Unit. Each Unit will consist of one common share of the Company (each, a "Common Share") along with one- half of one Common Share purchase warrant (each whole warrant, a "Warrant") to purchase one additional Common Share at a price of $0.30 per share for a period of two years from the closing of the Private Placement.
Mackie Research Capital Corporation (the “Agent”) is acting as sole agent and book-runner for the Private Placement on a “best efforts” basis. The Company has also granted the Agent an option to increase the size of the Private Placement by up to 15% at any time up to 48 hours prior to the closing of the Private Placement.
Units will be offered pursuant to exemptions from prospectus requirements of applicable securities legislation. Securities issued pursuant to the Private Placement will be subject to a hold period of four months and a day from the date of issuance of the securities. Completion of the Private Placement is subject to the satisfaction of certain conditions including the receipt of approval of the TSX Venture Exchange. Closing of the Private Placement is anticipated to occur on or about July 15, 2015.
The Company’s new accounts receivable financing facility allows the Company to access up to $550,000 of financing from a third party lender by assigning its rights to certain accounts receivable as required to the lender at a 3% discount. Amounts advanced under the facility will be repaid out of the proceeds of the assigned receivables. The Company has granted the lender a first ranking security interest for these accounts receivable as security for its obligations under the facility.
About Pioneering Technology Corp: Based in Mississauga, Ontario, an "Energy Smart" product innovation/consumer goods company and North America's leader in cooking fire prevention technologies. Pioneering engineers and brings to market energy-smart solutions for consumer products making them safer, smarter, or more efficient. Pioneering's patented cooking-fire prevention technologies/products are engineered to help prevent cooking fires, the number one cause of household fire (a multi-billion dollar problem) in North America. Pioneering's cooking fire prevention trademarks include Safe-T-element, SmartBurner, RangeMinder and Safe-T-sensor. www.pioneeringtech.com.
For more information please contact:
Kevin Callahan, CEO of Pioneering Technology, 905-712-2061 ext.222, kcallahan@pioneeringtech.com.
Jonathan Buick, The Buick Group, Corporate Relations, (416) 915-0915, jbuick@buickgroup.com.
Forward Looking Statements
The statements made in this press release include forward-looking statements, including statements regarding the Company’s intention to carry out the Private Placement and the anticipated terms thereof, that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in the Company’s target markets, the demand for the Company’s products, the availability of funding, the efficacy of the Company’s technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company’s expectations and projections and there can be no assurance that the Private Placement will be completed on the terms described herein or at all.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
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