Earth Alive Announces Closing of $5 Million Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

MONTREAL, Feb. 26, 2021 (GLOBE NEWSWIRE) -- Earth Alive Clean Technologies Inc. (TSXV: EAC – “Earth Alive” or the “Company”), a Canadian soil health company that develops and manufactures advanced microbial technology products, today announced closing of a non-brokered private placement (the “Offering”) of units (the “Units”). The Company issued 43,478,261 Units at a price of $0.115 per Unit for gross proceeds of $5 million.

Each Unit consists of one common share of the Company (“Share”) and one common share purchase warrant of the Company (“Warrant”). Each Warrant entitles its holder to subscribe for one Share at a price of $0.25 per Share, until February 25, 2024. Each Warrant is subject to an accelerated expiry clause pursuant to which if, at any time after October 31, 2021, the closing trading price of the Shares on the TSX Venture Exchange is equal to or superior to $0.45 for a period of 20 consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving written notice to the holders of Warrants and the Warrants will expire at 5:00 p.m. (Montréal Time) 30 days after such notice.

“The Offering book was primarily comprised of European businesspersons and investors, directly or through related entities, including Messrs. Robert Taub, Eric Swenden, Christian Dumolin, Juergen Hambrecht, Vladimir Cardon de Lichtbuer and Nikolaos Sofronis,” said Michael Warren, President and CEO of Earth Alive. “Our new shareholders have strong business relationships in Europe, across the Atlantic and around the globe. With their support and these additional financial resources, we believe that Earth Alive is better positioned than ever to capitalize on its substantial pipeline of tangible, near term business opportunities.”

The Corporation intends to use the net proceeds from the Offering to grow the size of its team, to fund operational projects and the growth of the business, and for general corporate purposes.

In connection with the Offering, the Company issued 2,065,217 Units to a finder as compensation. The Warrants forming part of the Units issued to such finder have the same terms as the Warrants underlying other Units issued pursuant to the Offering, except that such Warrants are non-transferable.

All securities issued in connection with the Offering are subject to a statutory hold period until June 26, 2021.

The securities offered pursuant to the Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.