ALUULA Composites Inc. Announces Rights Offering
Victoria, British Columbia--(Newsfile Corp. - December 16, 2024) - ALUULA Composites Inc. (TSXV: AUUA) ("ALUULA" or the "Company") is pleased to announce that it is offering rights (the "Rights Offering") to raise proceeds of up to approximately C$2,500,000, with a C$1,500,000 standby commitment.
Pursuant to the Rights Offering, each holder of the Company's common shares (the "Shares") of record at the close of business on December 30, 2024 (the "Record Date") resident in Canada will receive one transferable right (a "Right") for each one Share held. Each Right will entitle the holder to subscribe for one Share of the Company a subscription price of C$0.01 per Share (the "Basic Subscription Privilege").
The Rights issued under the Rights Offering will expire at 2:00 p.m. PST on January 21, 2025 (the "Expiry Date"), after which time unexercised Rights will be void and of no value. The Rights Offering includes an additional subscription privilege under which eligible holders of Rights who fully exercise their Basic Subscription Privilege will be entitled to subscribe for additional available Shares on a pro-rata basis that are not otherwise subscribed for under the Basic Subscription Privilege.
The Rights will be listed for trading on the TSX Venture Exchange under the symbol "AUUA.RT" beginning on December 30, 2024, and the Rights will be de-listed at 9:00 a.m. PST on January 21, 2025. ALUULA expects use the gross proceeds from Rights Offering to repay indebtedness, purchase equipment for use in research and development and production, investigate alternative manufacturing methods, and for working capital and general corporate purposes. The expected closing date of the Rights Offering is January 24, 2025.
Details of the Rights Offering are set out in the Company's Rights Offering notice (the "Notice") and Rights Offering circular (the "Circular"), which are available under ALUULA's profile on SEDAR+ at www.sedarplus.ca. It is expected that the Notice, a DRS statement representing the Rights, and a subscription form will be mailed to each registered shareholder of the Company resident in Canada as at the Record Date. Registered shareholders who wish to exercise their Rights must deliver a completed subscription form, together with the applicable payment, to the Company's depository and rights agent, Odyssey Trust Company, at or before 2:00 p.m. PST on the Expiry Date. Shareholders who hold their Shares through an intermediary, such as a bank, trust company, securities dealer, or broker, are expected to receive materials and instructions from their intermediary. Shareholders are encouraged to refer to the Notice, Circular, and their DRS statement and subscription form for detailed information on the Rights Offering, as well as complete instructions for exercising their Rights.