Riwi closes final tranche of $2.49-million financing

Executive Summary

• Riwi Corp. has closed the second and final tranche of its non-brokered private placement, bringing total gross proceeds to $2,496,666.
• The company issued an aggregate of 8,322,220 units across both tranches, with the final tranche consisting of 4,530,900 units priced at $0.30 per unit.
• Proceeds are designated for general working capital, corporate purposes, and continued product development and commercialization activities.

Key Details

• Total Gross Proceeds: $2,496,666 (including both tranches).
• Second Tranche Details:
  • Units Issued: 4,530,900.
  • Price Per Unit: $0.30.
  • Gross Proceeds from Second Tranche: $1,359,270.
• Aggregate Issuance: 8,322,220 units total.
• Security Structure: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms:
  • Exercise Price: $0.50 per share.
  • Duration: Two years from the date of closing.
  • Acceleration Clause: If the share price on the TSX Venture Exchange equals or exceeds $0.75 for 10 consecutive trading days, the company may accelerate the expiry date to 30 days after notice. Unexercised warrants expire without compensation.
• Use of Proceeds: General working capital, corporate purposes, product development, and commercialization.
• Insider Participation: Insiders purchased 614,400 units. This constitutes a related party transaction under Multilateral Instrument 61-101, relying on exemptions from formal valuation and minority shareholder approval as the fair market value of insider participation does not exceed 25% of market capitalization.
• Finder’s Fees: Cash commissions totaling $57,312 paid to arm's-length finders, representing 6% of gross proceeds raised from subscribers introduced by such finders.
• Regulatory Conditions: Subject to final acceptance by the TSX Venture Exchange and customary closing conditions.
• Hold Period: Securities are subject to a statutory hold period of four months and one day from the date of issue.

Notable Quotes

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