Pure Extracts Technologies Closes $3 Million Lead Order and Announces Upsizing of Private Placement to $5 Million to Accommodate Investor Demand

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VANCOUVER, British Columbia, Jan. 06, 2021 (GLOBE NEWSWIRE) -- Pure Extracts Technologies Corp. (“Pure” or the “Company”) (CSE: PULL)(XFRA: A2QJAJ) is pleased to announce that, due to strong investor demand, it has increased its non-brokered private placement offering of special warrants (each, a “Special Warrant”) previously announced on December 16, 2020 (the “Private Placement”). Under the upsized Private Placement, the Company will offer for sale up to 9,900,990 Special Warrants at a price of $0.505 for gross proceeds of approximately $5,000,000.

The Company is also pleased to announce it has closed a lead order for the Private Placement, issuing an aggregate of 6,061,033 Special Warrants, for aggregate gross proceeds of $3,060,821.67.

The Special Warrants will automatically convert to units (the “Units”) upon the earlier of the receipt for a final prospectus qualifying the distribution of the Units or four months and a day from the final closing date of the final tranche of the Offering. Each Unit will be comprised of one common share of the Company (each a “Common Share”) and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share (a “Warrant Share”) at an exercise price of $0.65 per Warrant Share for a period of 24 months following the deemed exercise date of the Special Warrants.

Finder’s fees of $95,736.57 cash and 218,971 finder’s warrants (each a “Finder’s Warrant”) have now been paid and issued in conjunction with the initial tranche of the Private Placement. Each Finder’s Warrant entitles the holder thereof to purchase one common share of the Company (the “Finder’s Warrant Shares”) at an exercise price of $0.65 per Finder’s Warrant Share until January 5, 2023.

All securities issued under the first tranche of the Private Placement will be subject to a statutory 4-month hold period, which expires on May 6, 2021, in accordance with applicable Canadian securities laws.

The Company intends to use net proceeds from the Private Placement primarily for expansion of capacity for the Company’s extraction business and for general working capital.

The Company will use its commercially reasonable efforts to qualify the distribution of the Common Shares and Warrants issuable upon exercise of the Special Warrants by way of a short form prospectus (“Qualifying Prospectus”). Upon completion of the Private Placement, the Company will make an application to list the Warrants on the Canadian Securities Exchange (the “Exchange”), subject to the Company fulfilling all of the listing requirements of the Exchange. The Special Warrants will not be listed on any stock exchange or over‐the‐counter market.