Surenano Science closes $1.25-million financing

Executive Summary

• Surenano Science Ltd. has closed a non-brokered private placement, raising gross proceeds of $1,250,000.
• The company issued 10 million units at a price of 12.5 cents per unit, with each unit consisting of one common share and one common share purchase warrant.
• Proceeds are designated for operating expenses, working capital, market exploration for its Surenano surfactant, and potential M&A activities.

Key Details

• Gross Proceeds: $1,250,000.
• Units Issued: 10,000,000 units.
• Price Per Unit: $0.125 CAD.
• Unit Composition: Each unit comprises one common share and one common share purchase warrant.
• Warrant Terms:
  • Each warrant entitles the holder to acquire one common share at an exercise price of $0.35 per share.
  • Warrant expiry is 24 months from the date of issuance. Acceleration Provision: If the company's shares trade on the Canadian Securities Exchange at a closing price of $0.50 or greater for 10 consecutive trading days (starting after four months and one day post-closing), the company may accelerate warrant expiry by providing notice, with warrants expiring 30 days after such notice.
• Finder’s Compensation:
  • Total cash commissions paid: $75,000.
  • Total finders' warrants issued: 600,000 warrants.
  • Commission Structure: 6% in cash and 6% in common share purchase warrants.
  • Finder’s Warrant Terms: Exercisable to purchase one common share at $0.35 per share for 24 months, subject to the same acceleration provision as investor warrants.
• Use of Proceeds:
  • Operating expenses, including legal and audit fees.
  • General working capital.
  • Expenses related to exploring new markets for the Surenano surfactant.
  • Evaluating and potentially completing business combinations or acquisitions with complementary companies.
• Hold Period: Common shares, warrants, and finders' warrants are subject to a statutory hold period of four months and one day from the date of issuance under Canadian securities laws.