Zonetail Inc. Provides Update on Non-Brokered Private Placement for up to $1,295,683

About this update from Zonetail, Inc.

[{"type":"text","content":"Zonetail Inc. Provides Update on Non-Brokered Private Placement for up to $1,295,683Toronto, Ontario--(Newsfile Corp. - May 29, 2020) - Zonetail Inc. (TSXV: ZONE) (\"Zonetail\" or the \"Company\"), is pleased to announce that it has received a 30 day extension from the TSX Venture Exchange (\"TSXV\") (to July 2, 2020) to its previously announced private placement (see press releases dated February 19, 2020 and April 13, 2020 and April 29 for full details). The private placement is offering for sale, on a non-brokered private placement basis, securities of the Company (the \"Offering\") consisting of units of the Company (the \"Units\") 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\"), for aggregate gross proceeds to Zonetail of a minimum of $450,000 (the \"Minimum Proceeds\") and a maximum of $1,295,683 (the \"Maximum Proceeds\"). 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. The Offering is subject to the receipt of all necessary approvals, including the approval of the TSXV, as well as the satisfaction of other customary closing conditions, including achievement of the Minimum Proceeds under the Offering. The closing of the Minimum Proceeds is expected to close on or about June 1, 2020.An insider of the Company plans to backstop the private placement and may subscribe for an aggregate number of Units in one or more closings, such that it is anticipated that the same insider of the Company will become a \"control person\" pursuant to the policies of the TSX Venture Exchange (the \"TSXV\") as a result of the Offering. The issuance of Units to the insider pursuant to the Offering is considered a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company relied on exemptions from the formal valuation and minority approval requirements in sections 5.5(g) and 5.7(1)(e) of MI 61-101 in respect of insider participation on the basis of financial hardship. Further details will be provided in the Company's material change report to be filed o...

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