Stardust Solar arranges $1-million private placement

Executive Summary

• Stardust Solar Energy 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 simultaneously entered into a debt settlement agreement to convert $75,000 in legal services debt into 750,000 shares at $0.10 per share.
• Net proceeds from the private placement will be used to expand operations, general and administrative expenses, marketing, and working capital.

Key Details

• Private Placement Structure:
  • Units Offered: Up to 10,000,000 units.
  • Price: $0.10 per unit.
  • Gross Proceeds: Up to $1,000,000.
  • Composition: Each unit consists of one common share and one transferrable common share purchase warrant.
  • Warrant Terms: Each warrant allows the purchase of one additional share at $0.15 per share for a period of 18 months from closing.
• Finder’s Fees:
  • Cash fees of up to 7.0% of gross proceeds paid to eligible finders.
  • Non-transferable finders' warrants issued equal to 7.0% of the number of units sold.
  • Finder's warrant exercise price: $0.15 per share for 18 months from issuance.
• Use of Proceeds: Expansion of operations, general and administrative purposes, marketing, and working capital.
• Regulatory and Hold Periods:
  • Subject to TSX Venture Exchange and corporate/regulatory approvals.
  • Statutory hold period of four months plus one day for all securities issued.
  • Offering may close in one or more tranches; no minimum aggregate subscription amount required.
• Debt Settlement Agreement:
  • Creditor: Arm's-length creditor providing legal services.
  • Debt Amount: $75,000.
  • Consideration: 750,000 common shares issued to the creditor.
  • Deemed Price: $0.10 per share.
  • Hold Period: Statutory hold of four months plus one day from issuance.
  • Conditions: Subject to necessary corporate and regulatory approvals, including TSX-V.