Encore Technologies closes private placement, raises $1.67M CAD

Encore Technologies Corp. (CSE: ENCR) has completed a non-brokered private placement, issuing 6,410,461 common shares at $0.26 per share for gross proceeds of $1,666,719.86, according to a press release from the Vancouver-based company.

The offering was oversubscribed. The company paid aggregate cash finder's fees of $104,570.39 to certain finders in connection with the placement. All securities issued are subject to a statutory hold period of four months and one day from the date of issuance.

Two directors of the company subscribed for an aggregate of 400,000 shares for gross proceeds of $104,000, making the offering a related party transaction under Multilateral Instrument 61-101. The company relied on exemptions from formal valuation and minority shareholder approval requirements, as the fair market value of consideration paid to related parties did not exceed 25% of the company's market capitalization.

Encore also announced it has increased its strategic investment in Solstar Space Company to approximately US$1.16 million, up from a previously announced amount. The funds are to be advanced to Solstar under a secured convertible loan agreement upon completion of final loan documentation.

Solstar is a U.S.-based space communications company whose Deke Space Communicator is currently operating in orbit.

Stephen Kukucha, Chief Executive Officer of Encore, said the completed financing and increased investment represent "an important milestone" for the company, adding that Encore looks "forward to supporting the Company's next phase of growth while exploring opportunities to create long-term value through our strategic relationship."

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