HPQ Silicon Closes Equity Financing to Advance PUREVAP(TM) Testing and Commencement of Pilot Plant Equipment Build Out
MONTRÉAL, QUÉBEC--(Marketwired - Nov. 24, 2017) - HPQ Silicon Resources Inc ("HPQ") (TSX VENTURE:HPQ)(FRANKFURT:UGE)(OTC PINK:URAGF) is pleased to inform shareholders that it had decided to close the previously announced non-brokered equity financing at $ 1,250,100. The funds raised in this non-brokered private placement will help to support the advancement of the Gen2 testing, commencement of the Pilot Plant Equipment build out and will be used in part for working capital and general corporate purposes.
Bernard Tourillon, Chairman and CEO of HPQ Silicon stated: "Demand for the placement exceeded the over allocation allotment potential, however we decided to closed the placement and limit dilution at this time. This round of funding provides HPQ-Silicon with the resources and flexibility to continue the advancement of the Gen2 testing and Pilot Plant Equipment project with PyroGenesis. With this round closed, the funding required for the remaining capital expenditure to complete the entire project, including running the Pilot Plant Equipment, is estimated to be $3.2 million. Regarding the financing of the $3.2 million, HPQ management is in discussion with institutions in order to complete the financing package during 2018."
Terms of the Private Placement
HPQ-Silicon has closed the non-brokered private placement consisting of 12,501,000 units ("Unit") at $0.10 per Unit for gross proceeds of up to $1,250,100.
Each Unit is comprised of one (1) common share and one (1) common share purchase warrant ("Warrant") of the Company. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company at an exercise price of $ 0.15 during a period of 36 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month and one (1) day holding period from the date of closing of the placement. The placement is subject to standard regulatory approvals.
In connection with the placement the Company paid cash finder's fee of $21,000 to Secutor Capital Management Corp ("Secutor") of Toronto, Ontario, $14,000 to EMD Financial Inc. ("EMD") of Montreal Quebec, $39,000 to Redplug Capital Corp ("Redplug") of Surrey, British Columbia, and $2,475 to Foster & Associates Financial Services Inc ("Foster") of Toronto, Ontario. The Company also issued 390,000 warrants to Redplug and 24,750 warrants to Foster. Each warrant, and any share purchased through the exercise of the warrants have the mandatory four (4) month and one (1) day holding period from the date of closing of the placement and gives Redplug and Foster the right to purchase one (1) common share at 15.0 cents for 36 months. Finally the Company will issue 175,000 common shares and 175,000 options to EMD. Each option will give the right to purchase one (1) unit at 10 cents for 36 months. Each Unit is comprised of one common share and one common share warrant (warrant) of the Company. Each warrant will entitle its holder to purchase one common share of the capital stock of the Company at an exercise price of $0.15 during a period of 36 months from the date of closing of the placement. Each share issued therefrom will have a mandatory four month and one day holding period from the date of closing of the placement.