Solegear Announces First Tranche Close of Oversubscribed Private Placement for $1,053,850

Solegear Bioplastic Technologies (TSXV:SGB) and Gravitas Securities have announced the completion of an interim close of a brokered private placement previously announced August 1, 2017 for aggregate gross proceeds of $1.05 million, an increase from the original amount of $500,000.
As quoted in the press release:

The Company further announces that it is accepting a limited number of additional oversubscriptions in anticipation of a final close on or before September 22, 2017.
In this first of two tranches, the Company has issued 10,538,500 Units at a price of $0.10 per Unit. Each unit is comprised of one common share of the Company (each, a “Share“) and one common share purchase warrant (each, a “Warrant“, and together, a “Unit“). As a result, the Company has a total of 91,138,354 common shares issued and outstanding. Insider and related party participation in the private placement totaled 1,219,500 Units. Proceeds from the Private Placement will be used to accelerate the fulfillment of pending customer orders and product line extensions.
Each Warrant entitles its holder to acquire one additional Share of the Company at a price of $0.15 per Share within the 24-month period following the closing of the First Tranche.
“The demand in our latest Private Placement is further validation of the market opportunity for our plant-based products and packaging,” said Paul Antoniadis, CEO of Solegear. “After having achieved record sales in our last quarter, the Company is entering a new chapter of growth, and with Gravitas’ support we’re in an excellent position to capture additional market share.”
In connection with the closing of the First Tranche, the Company paid Gravitas, plus certain members of the selling group, an aggregate cash commission of $64,175.48. The Company also issued to the Agent and certain members of the Agent’s selling group non-transferable options to acquire 638,195 Units from treasury at a price of $0.10 per Unit, exercisable at any time within the 24-month period following the closing date of the First Tranche.

Click here to read the full press release.