SATO Technologies settles senior secured debt, launches C$1.5M placement

SATO Technologies Corp. (TSXV: SATO, OTCQB: CCPUF) has reached a loan settlement with Sygnum Bank AG to eliminate all of its senior secured debt, while also launching a non-brokered private placement of up to C$1,500,000, according to a company statement.

Under the settlement agreement, Sygnum Bank will retain approximately 6.69 Bitcoin held in relevant accounts, and SATO's wholly-owned subsidiary, Canada Computational Unlimited Inc., will make a cash payment of CHF150,000. The company said the settlement constitutes full satisfaction of the outstanding loan and a full release of all related obligations.

The private placement consists of up to 15,000,000 units priced at C$0.10 per unit. Each unit includes one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at C$0.20 for a period of two years from the date of issue, subject to acceleration. The cash payment to Sygnum will be funded from a portion of the placement proceeds.

Proceeds from the offering are intended for infrastructure and asset acquisitions, satisfaction of existing obligations, and general working capital. The offering remains subject to TSX Venture Exchange approval and may close in one or more tranches.

SATO also announced a separate debt settlement of C$25,000 owed to an arm's length creditor under a consulting agreement. The debt will be settled through the issuance of 250,000 units at C$0.10 per unit on the same terms as the private placement.

Romain Nouzareth, CEO and Chairman of SATO, stated: "This is a turning point for SATO. With the settlement of our senior secured debt and this financing, we move forward with a clean balance sheet and a singular focus: converting our energy capacity into AI infrastructure — starting with our Joliette facility in Québec."

All securities issued under the offering are subject to a hold period of four months and one day in Canada. Insiders may participate in the offering, which the company said would constitute a related party transaction under Multilateral Instrument 61-101.

You May Also Be Interested In

• Aggreko files for proposed IPO
• TMCR doubles Mesabi royalty stake with $165M financing
• BrandPilot AI plans $250,000 private placement at $0.02 per unit