Solar Alliance announced $1,000,000 non-brokered private placement and shares for debt exchange

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TORONTO and KNOXVILLE, Tenn., May 14, 2024 (GLOBE NEWSWIRE) -- Solar Alliance Energy Inc. (‘Solar Alliance’ or the ‘Company’) (TSX-V: SOLR), a leading solar energy solutions provider focused on the commercial and industrial solar sector, is pleased to announced its intention to complete a non-brokered private placement of up to 20,000,000 units of the Company (the “Units”) at a price of C$0.05 per Unit for gross proceeds of up to C$1,000,000 (the “Offering”). Each Unit will be comprised of one (1) common share of the Company (a “Common Share”) and one (1) Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one (1) Common Share (a “Warrant Share”) at an exercise price of C$0.07 per Warrant Share at any time for a period of thirty-six (36) months following the closing of the Offering. Closing of the Offering is expected to be on or about June 20, 2024 or such other date or dates that that the Company may determine.

The Units will be offered by way of the “listed issuer” financing exemption (the “Listed Issuer Exemption”) under National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”) in all the provinces of Canada with the exception of Quebec, and such other jurisdictions as the Company may determine (the “Selling Jurisdictions”). Since the Offering is being completed pursuant to the Listed Issuer Exemption, the securities issued under the Offering will not be subject to a hold period under applicable Canadian securities laws.

The Company intends to use the net proceeds from the Offering for general corporate and working capital purposes. Completion of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the “TSXV”) and applicable securities regulatory authorities.

In addition, the Company has agreed to settle CAD$115,000 of debt owed to an Insider of the Company, in consideration for the issuance of 2,300,000 Common Shares at a deemed price of CAD$0.05 per Common Share (the “Debt Settlement”). The debt is payable in respect of loans owed to the Insider by the Company. The closing of the Debt Settlement is subject to the approval from TSXV. The Corporation expects that the proposed Debt Settlement will assist the Company in preserving its cash for working capital and the board of directors of the Corporation believes the Debt Settlement is in the best interests of the Corporation. The securities to be issued pursuant to the Debt Settlement will be subject to a four month and one day statutory hold period from the date of issuance.