Earthworks arranges $300,000 private placement

Executive Summary

• Earthworks Industries Inc. announced a non‑brokered private placement of 5 million units at $0.06 per unit, targeting gross proceeds of $300,000.
• Each unit consists of one common share and one warrant; warrants allow purchase of an additional share at $0.10 for two years, with forced exercise if the market price stays ≥$0.20 for 10 consecutive trading days.
• Proceeds will fund current expenses, legal costs defending the Cortina lease, and general working capital.

Key Details

• Units Offered: 5,000,000 units @ $0.06 per unit → Gross proceeds: $300,000.
• Unit Composition: 1 common share + 1 share purchase warrant.
• Warrant Terms: Exercise price $0.10 per share; exercisable for two years; forced exercise if Earthworks’ share price ≥$0.20 for 10 consecutive trading days.
• Commission: Company expects to incur commissions on a portion of the placements.
• Use of Proceeds:
• Pay current operating expenses.
• Cover continuing legal costs related to defending the Cortina lease and its enforceability.
• Provide general working capital.
• Legal Context: CIWM (wholly owned U.S. subsidiary) is litigating in the U.S. District Court for the Eastern District of California against an order from the Interior Board of Indian Appeals that seeks to cancel the federally approved lease with the Kletsel Dehe Wintun Nation of the Cortina Rancheria, California.

Notable Quotes

• “We seek Safe Harbor.” – Mr. David Atkinson (reporting officer)