BALANCE SHEET STRENGTHENED WITH CAPITAL TO BE USED TO RETIRE DEBENTURES AND ADDED TO WORKING CAPITAL
NOT FOR RELEASE OR DISSEMINATION IN THE UNITED STATES
TORONTO, Aug. 22, 2019 (GLOBE NEWSWIRE) — ARHT Media Inc. (the “Company” or “ARHT”) (TSX-V:ART), a global leader in holographic telepresence, is pleased to announce it has closed the first tranche (the “First Tranche”) of the previously announced non-brokered private placement (the “Offering”) of units (the “Units”). The Company issued 14,934,076 Units as part of the First Tranche at a price of $0.13 per Unit for aggregate gross proceeds of $1,941,429.88.
Each Unit consists of one common share of the Company and one common share purchase warrant (a “Warrant”). Each Warrant will be exercisable to purchase one additional common share of the Company at an exercise price of $0.18 per share for a period of three years following the closing of the Offering. If at any time after four months and one day from the closing of the First Tranche, the common shares of the Company trade at a price of $0.50 per common share or higher (on a volume weighted adjusted basis) for a period of six consecutive weeks, the Company will have the right to accelerate the expiry date of the Warrants to the date that is 30 days after the Company issues a news release announcing that it has elected to exercise this acceleration right.
The proceeds from the First Tranche of the Offering will be used for general and working capital purposes as well as for the retirement of the Company’s outstanding debentures in the amount of $800,000.
The First Tranche of the Offering is subject to final approval of the TSX Venture Exchange. The securities issued pursuant to the Offering will be subject to a four month and one day statutory hold period expiring on December 23, 2019.
Certain insiders of the Company have subscribed for Units pursuant to the First Tranche of the Offering (the “Insider Participation”). The Insider Participation will be considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The Insider Participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.
About ARHT Media
ARHT Media’s patented holographic telepresence technology is a complete end-to-end solution that creates a sense of presence for audiences – as though the holographic presenter was actually live in the room. With no noticeable latency, ARHT Media makes two-way live communication with a 3D holographic presenter anywhere in the world possible. We can also playback pre-recorded content and 3D animations on our displays to deliver rich holographic experiences.
ARHT Media trades under the symbol “ART” on the Toronto Venture Stock Exchange.
ARHT Media Press Contact
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the closing of the First Tranche or the use of proceeds of the First Tranche. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities 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 within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.