Kontrol Energy Announces Revised Pricing of Financing

Kontrol Energy (CSE:KNR) has announced revised pricing terms on its previously announced private placement offering for gross proceeds of up to $10 million in subscription receipts to the offering.

As quoted in the press release:

Pursuant to the Offering, Kontrol will issue Subscription Receipts at a price of $0.90 per Subscription Receipt.

The purchasers of the Subscription Receipts will automatically receive, for no additional consideration and without any action on their part, for every Subscription Receipt held, one unit of the Company (a “Unit”) comprised of one common share (a “Common Share”) and one common share purchase warrant (each a “Warrant”). Each Warrant will entitle the holder to acquire one common share at an exercise price of $1.10 per share for a period of 60 months following closing of the Offering.

The Warrants will not be subject to a warrant accelerator clause as previously announced by the Company. The Company will use commercially reasonable efforts to obtain the necessary approvals to list the Common Shares, the Warrants and the Common Shares issuable upon exercise of the Warrants on the Canadian Securities Exchange (“CSE”). All securities issued in the Offering will be subject to a four month hold period from the date of closing of the Offering.

The Offering is being led by Mackie Research Capital Corporation (“MRCC” or, the “Agent”) acting as lead agent and sole bookrunner on behalf of a syndicate of agents, including Echelon Wealth Partners Inc. and Eight Capital.

The Company has also granted to the Agent an option (the “Over-Allotment Option”) to offer up to an additional 15% in Subscription Receipts prior to closing of the Offering.

Click here to read the full press release.