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Zonetail Inc. Announces Closing of First Tranche of Non-Brokered Private Placement; Completes Initial Closing For Proceeds of $479,200
Toronto, Ontario--(Newsfile Corp. - June 3, 2020) - Zonetail Inc . (TSXV: ZONE) ("Zonetail" ...
About this update from Zonetail, Inc.
[{"type":"text","content":"Zonetail Inc. Announces Closing of First Tranche of Non-Brokered Private Placement; Completes Initial Closing For Proceeds of $479,200Toronto, Ontario--(Newsfile Corp. - June 3, 2020) - Zonetail Inc. (TSXV: ZONE) (\"Zonetail\" or the \"Company\"), is pleased to announce the closing of the first tranche of its previously announced private placement. The Offering consists of units of the Company (the \"Units\") being issued at a price of $0.02 per Unit, with each Unit being comprised of one common share (a \"Share\") and one whole common share purchase warrant (a \"Warrant\"). Each Warrant will entitle its holder to purchase one (1) additional Share of the Company at an exercise price of $0.05, for a period of twelve (12) months from the closing date of the Offering. In connection with the initial closing of the Offering, the Company has issued an aggregate of 23,960,000 Units, for gross proceeds of $479,200, including the acceptance by the Company of a subscription of an insider of the Company for 7,500,000 Units generating aggregate gross proceeds of $150,000 (the \"Insider Subscription\"). The Company has also paid eligible finders (\"Finders\"), being Stephen Avenue Securities Inc., Gathering Waters Ltd., Gathering Waters Ltd. II, Integral Wealth Securities Limited and Canaccord Genuity Corp., all of whom are at arm's length to the Company and its insiders within the meaning of Policy 5.1 of the TSX Venture Exchange (the \"Exchange\"), cash compensation as finders fees of approximately $13,372 in aggregate and has issued an aggregate of 663,000 finders warrants of the Company to such eligible finders (\"Finders Warrants\"). Each Finder Warrant entitles the holder to purchase one Share of the Company at an exercise price of $0.05, for a period of twelve (12) months from the closing date of the Offering. All securities issuable pursuant to the Offering, including the Finders Warrants and the Shares, if any, issuable on their exercise are subject to a four month and one day hold period from the date of issuance in accordance with applicable Canadian securities laws.As previously disclosed, the issuance of Units to an insider under to the Offering is considered a related party transaction within the meaning of Policy 5.9 of the Exchange and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transacti...