ORIGINAL: Zen Graphene Solutions Ltd. Completes Non-Brokered Private Placement of Units

2020-07-06 16:02 ET - News Release

Thunder Bay, Ontario--(Newsfile Corp. - July 6, 2020) - Zen Graphene Solutions Ltd. (TSXV: ZEN) ("Zen Graphene" or the "Company") is pleased to announce the closing of the second tranche, comprised of 1,621,175 units, of its previously announced private placement of units (the "Offering"). The Company raised total gross proceeds of $2,049,999.80 under the Offering, which will be used to fund ongoing work on the Albany Graphite Project including graphene research and scale up, COVID-19 initiatives and other graphene applications development and for general corporate purposes. The Board of directors wishes to thank all the long-term shareholders and new shareholders who participated in the Offering. 

Francis Dubé, CEO commented: "With this private placement now completed, the company is in a strong financial position to accelerate the many research and development projects it has underway and explore new opportunities that are being considered."

The total Offering consisted of the issuance of 3,416,666 units ("Units") at a price of $0.60 per Unit, for aggregate gross proceeds of $2,049,999.80. Each Unit consisted of one common share of the Company ("Common Share") and one half of one non-transferable share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder thereof to acquire one additional Common Share at an exercise price of $0.80 per Warrant, exercisable for a period of twenty-four months from the closing of the Offering (the "Exercise Period"). 

All Warrants issued in connection with the Offering are subject to an acceleration clause. If the Company's share price trades at or above $1.00 per share for a period of ten (10) consecutive trading days during the Exercise Period, the Company may accelerate the expiry date of the Warrants to 30 calendar days from the date on which written notice is given by the Company to the holders of the Warrants.

The Common Shares and the Warrants issued in connection with the second tranche of the Offering will be subject to a hold period until November 7, 2020 in accordance with applicable securities laws.

For further information:

Brian Bosse, Chief Financial Officer
Tel: +1 (705) 618-0900
Email: [email protected]