Principal Technologies closes $624k private placement

Executive Summary

• Principal Technologies Inc. has closed a non-brokered private placement offering, issuing 2.08 million common shares at $0.30 per share.
• The financing raised gross proceeds of $624,000, primarily to fulfill research and development obligations under a technology license agreement with Oxford University Innovation Ltd.
• The transaction involves a related-party transaction where significant shareholder Roman Leydolf purchased the shares, relying on specific exemptions from valuation and minority shareholder approval requirements under Multilateral Instrument 61-101.

Key Details

• Transaction Structure: Non-brokered private placement offering.
• Shares Issued: 2.08 million common shares.
• Price Per Share: $0.30 CAD.
• Gross Proceeds: $624,000.
• Use of Proceeds: To fulfill research and development financing obligations of the license agreement with Oxford University Innovation Ltd. and for other general corporate purposes.
• Investor: Roman Leydolf, a significant shareholder and insider of the company.
• Related-Party Transaction Status: The participation by Mr. Leydolf constitutes a related-party transaction under Multilateral Instrument 61-101.
• Exemptions Applied: The company relied on exemptions from valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of securities nor the consideration exceeded 25% of the company's market capitalization.
• Regulatory Filing: No material change report was filed 21 days prior to closing to expedite the placement.
• Share Restrictions: Common shares are subject to a statutory hold period expiring December 1, 2025 (four months and one day from issuance).
• Regulatory Approval: The private placement remains subject to final acceptance by the TSX Venture Exchange.
• Finders' Fees: None applicable.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.