SATO Technologies announces private placement for up to C$1.3 million

SATO Technologies Corp. (TSXV: SATO) announced a non-brokered private placement offering to raise up to C$1.3 million in gross proceeds, according to a company statement.

The offering consists of up to 14.9 million units priced at C$0.06375 each for proceeds of up to C$950,000, and up to 350 convertible debenture units for proceeds of up to C$350,000. Each unit includes one common share and one warrant allowing the purchase of an additional share at C$0.085 during the first year and C$0.10 thereafter, with warrants expiring five years from issuance.

The convertible debenture units carry a C$1,000 principal amount with 15% annual interest payable quarterly in cash or shares. The debentures mature in three years and can be converted to common shares at C$0.085 during the first year and C$0.10 thereafter. Each debenture unit includes detachable warrants exercisable at C$0.10 per share for three years.

SATO plans to use net proceeds for working capital and general corporate purposes. The company operates a data center for bitcoin mining and may expand to additional computing applications including artificial intelligence and high-performance computing.

The company also announced it will settle C$34,105 in consulting debt by issuing 534,980 units on the same terms as the private placement offering.

The offering requires regulatory approvals including from the TSX Venture Exchange. Securities issued will be subject to a four-month hold period under Canadian securities laws.

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