Further to its news release dated Feb. 13, 2017, Radient Technologies Inc (RTI.V) closed a private placement of 15,333,333 units at a price of 45 cents per unit for gross proceeds of $6.9-million, including the full exercise of the over allotment option for 15 per cent of gross proceeds. Each Unit is comprised of one common share of Radient and one half Common Share purchase warrant (each whole warrant, a “Unit Warrant”), with each whole Unit Warrant entitling the holder to subscribe for one additional Common Share at a price of $0.70 per Common Share until the date that is 24 months from the date of issuance.
Aurora Cannabis (ACB:CA) participated in the private placement as the lead investor for $1.21 million of the total proceeds.
The majority of the placement (11,333,333 Units) was placed on a brokered basis through Canaccord Genuity Corp. with the Agent exercising its over-allotment option in full. The Agent’s compensation consisted of 894,251 Units, being 7% of the Units subscribed on the brokered component with the Agent having elected to take its cash commission and a significant portion of its corporate finance fee in Units. The Agent was also issued 933,333 compensation options (the “Options”) with each Option exercisable for one Unit of Radient at a price of $0.45 per Unit.
The balance of the placement (4,000,000 Units) was placed by Radient on a non-brokered basis. Finder’s fees totaling $57,225 cash, 70,000 Units and 197,167 Options are payable by Radient in connection with the non-brokered component.
The proceeds of the Offering are expected to be used for the acquisition of analytical and production equipment for quality and purity tests, improvements to the plant to accommodate cannabinoid production and general working capital.
All securities issued in connection with the Offering are subject to a statutory four-month hold period.
Radient extracts natural compounds from a range of biological materials using its proprietary MAP(TM) natural product extraction technology platform which provides superior customer outcomes in terms of ingredient purity, yield, and cost. From its initial 20,000 square foot manufacturing plant in Edmonton, Alberta, Radient serves market leaders in industries that include pharmaceutical, food, beverage, natural health, personal care and biofuel markets. Visit www.radientinc.com for more information.
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