Kona Bay closes unit, debenture unit financings
2016-12-09 14:39 MT - News Release
Mr. Vincent Wong reports
KONA BAY TECHNOLOGIES CLOSES FINANCINGS
Kona Bay Technologies Inc.'s board of directors has closed its previously announced private placement financings (see news release dated Nov. 4, 2016) by issuing:
One million units at a price of 12 cents per unit for gross proceeds of $120,000: Each unit comprises one common share of the company and one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at 16 cents per share for a period of five years from the date of the issue.120 convertible debenture units for gross proceeds of $120,000: Each convertible debenture unit consists of a convertible debenture in the principal amount of $1,000 and 6,250 detachable share purchase warrants. Each debenture bears interest at the rate of 17 per cent per year, payable semi- annually, and will mature and be payable three years from the date of issue of the debenture. The warrants will entitle the holder to purchase one additional common share at 16 cents per share for a period of three years from the date of issue of the debentures. The debentures are unsecured.
Insiders purchased all units and convertible debenture units under the offerings for gross proceeds of $240,000. Any purchases by insiders will be considered a related party transaction subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101. The company will rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the private placement by each insider will not exceed 25 per cent of the fair market value of the company's market capitalization.
The securities issued under this first tranche of the financing will be subject to a hold period expiring on April 10, 2017, pursuant to applicable securities laws and the rules of the TSX Venture Exchange.
The company intends to use the gross proceeds of the offerings for general working capital.
About Kona Bay Technologies
Kona Bay Technologies acquires, manages and builds on-line customer acquisition businesses that address the specific client acquisition needs of its customers in particular vertical markets.
We seek Safe Harbor.
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