Grounded People arranges $1-million private placement

Executive Summary

• Grounded People Apparel Inc. announced a non-brokered private placement of up to 10 million units at $0.10 per unit, raising up to $1 million in gross proceeds.
• The company is utilizing the capital to support a strategic review of its business, specifically targeting opportunities in the mining and exploration sectors and emerging technologies.
• No definitive transactions have been entered into regarding the strategic review, and any future moves remain subject to regulatory approval, including that of the Canadian Securities Exchange.

Key Details

• Transaction Structure: Non-brokered private placement of up to 10 million units.
• Price: $0.10 per unit.
• Gross Proceeds: Up to $1,000,000.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms: Each whole warrant entitles the holder to purchase one share at an exercise price of $0.12 for a period of 36 months.
• Use of Proceeds: General working capital and support for the company's continuing strategic review.
• Strategic Focus: Evaluation of potential opportunities in mining, exploration, and emerging technologies, including preliminary technical assessments, due diligence, and strategic acquisition initiatives.
• Regulatory Status: The private placement is subject to customary conditions, including approval from the Canadian Securities Exchange.
• Hold Period: All securities issued are subject to a statutory hold period of four months and one day.
• Risk Factors: No assurance that the private placement will be completed or that any strategic initiative will result in a transaction.

Notable Quotes

• "This financing is intended to provide the company with additional flexibility as we continue to review strategic alternatives," said Maximilian Justus, chief executive officer of Grounded People. "Our focus remains on disciplined capital allocation while we evaluate opportunities that could support a more sustainable business going forward."