EEStor Announces Proposed Private Placement

Published: Apr 11, 2017 4:41 p.m. ET

TORONTO, ONTARIO, Apr 11, 2017 (Marketwired via COMTEX) -- TORONTO, ONTARIO--(Marketwired - April 11, 2017) -

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EEStor Corporation ("EEStor" or the "Company") (ESU) announced today that it intends to proceed with a non-brokered private placement of units ("Units") to raise gross proceeds of up to C$3,000,000, subject to the Corporation's ability to increase the size of the private placement by up to C$500,000 should demand warrant (the "Financing"). The Units will be offered at a price of C$0.50 per Unit and each Unit will consist of one common share of the Company and one common share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to acquire one additional common share of the Company at a price of C$1.00 for a period of 24 months following the closing of the Financing. All securities issued in the Financing will be subject to a 4-month hold period in Canada and such longer periods as may be required under other applicable securities law

Net proceeds from the Financing will be used to accelerate the Company's product and business development efforts and for working capital and general corporate purposes.

The Financing is expected to be completed in the next two week period and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. No finder's fees will be payable in connection with the Financing.

The securities referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.