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Pioneering Technology arranges C$6mln financing with Echelon

Monday, February 27, 2017 12:11
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Energy smart technology firm Pioneering Technology Corp. (CVE:PTE) shares jumped nearly 6% on Monday after the company said it raised C$6mln when Echelon Wealth Partners Inc. agreed to buy 5,454,546 units from the company at a price of C$1.10 per unit in a private placement.

Each Unit will consist of one common share of Pioneering and one-half of one warrant.

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.

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 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.

In connection with the Offering, Echelon will receive on closing of the Offering: (i) a cash fee of 7.0% of the gross proceeds of the Offering and a cash fee of 3.5% of the gross proceeds of sales of Units to President’s List subscribers; and (ii) that number of non-transferable compensation warrants, to purchase Units, on the same terms as the Offering, equal to 7.0% of the aggregate number of Units sold under the Offering and 3.5% of the aggregate number of Units sold to President’s List subscribers.

Pioneering shares were up 5.9% at C$1.25 on Monday.

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