- EEStor Corporation (ESU) has raised C$750,000 in a private placement to cover its operations for the next six months
- The company issued 21.4 million units at a price of 3.5 cents each, comprised of one common share and one share purchase warrant
- Each warrant will be exercisable at a price of 5 cents per share until November 2, 2022
- The proceeds will be used to retire existing payables, support operations and cover both general and administrative expenses
- EEStor Corporation (ESU) is currently steady at 6 cents per share
EEStor Corporation (ESU) has raised C$750,000 in a private placement to cover its operations for the next six months.
Under the terms of the offering, which was announced on October 9, the Toronto-based company issued a total of 21.4 million units at a price of 3.5 cents each.
These units are comprised of one common share in EEStor and one common share purchase warrant. Each warrant will entitle the holder to acquire an additional share at a price of five cents until November 2, 2022.
In connection with the offering, the company issued $45,500 in cash and 1.3 million warrants to certain parties who acted as finders for the placement.
According to today’s announcement, the proceeds will be used to retire existing payables, support operations and cover general and administrative expenses for the next six months.
Ian Clifford, CEO of EEStor Corporation, said he is pleased with the support that was shown for the placement.
“We were delighted with market interest in the financing, and it is also important to note that participation in this round included new and strategic institutional investors.
“We heard repeatedly, during the marketing of this financing, of a growing awareness regarding the necessity for a profound shift away from fossil fuel dependency which can be achieved with a truly carbon neutral fossil fuel replacement technology,” he added.
The capital injection follows a separate announcement released in early August, in which EEStor unveiled its plans to wholly acquire Green NH3 Inc., a private company involved in research, development and commercialisation of zero-emission NH3 fuel.
Under the terms of the deal, EEStor anticipates issuing roughly 48.3 million common shares to the shareholders of Green NH3, after which Green NH3 will continue as a wholly owned subsidiary of EEStor.
EEStor Corporation (ESU) is currently steady at 6 cents per share, as of 1:39pm EDT.