Pioneering Technology Corp. Announces $6 Million Bought Deal Private Placement

MISSISSAUGA, ONTARIO--(Marketwired - Feb. 27, 2017) -

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Pioneering Technology Corp. ("Pioneering" or the "Company") (TSX VENTURE:PTE), a technology company and North America's leader in cooking fire prevention technologies and products, is pleased to announce that it has entered into an agreement with Echelon Wealth Partners Inc. ("Echelon") pursuant to which Echelon has agreed to purchase 5,454,546 units ("Units") from the Company at a price of $1.10 per Unit on a bought deal private placement basis for aggregate gross proceeds of $6,000,000 (the "Offering").

Each Unit will consist of one common share of Pioneering (a "Common Share") and one-half of one warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share of Pioneering at a price of $1.80 for a period of 24 months following the closing of the Offering, provided that if, at any time after 12 months following the closing date of the Offering, the volume weighted average trading price of the Common Shares on the TSXV over any 15 consecutive trading day period is at least $2.50, the Company will have the right to accelerate the expiry date of the Warrants to a date that is 15 calendar days after the date on which the Company issues a press release announcing the accelerated expiry date.

The Company has also granted Echelon an option to purchase up to an additional 818,182 Units to cover over-allotments, exercisable in whole or in part at any time for a period of 30 days after and including the closing date of the Offering.

Concurrent with the Offering, the Company will have the right to sell, on a non-brokered basis, up to an additional 500,000 Units for additional aggregate gross proceeds of $550,000 on the same terms as the Offering to subscribers designated by the Company (the "President's List").

The gross proceeds from the sale of the Units will be used to repay existing indebtedness, fund business expansion, invest in product development and sales & marketing and for general corporate and working capital purposes.

The Offering is scheduled to close on or about March 16, 2017, or such other date as may be agreed to between the Company and Echelon, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange.