Stardust Solar completes first tranche of downsized private placement

Stardust Solar Energy Inc. (TSXV: SUN) (OTCQB: SUNXF) (FSE: 6330) completed the first tranche of its non-brokered private placement, issuing 6,487,479 units at $0.075 per unit for gross proceeds of $486,560.93, according to a company statement.

The company reduced the maximum size of the offering from $3,000,000 to $1,500,000 in response to investor preferences. Each unit consists of one common share and one warrant that allows the holder to purchase an additional share at $0.10 for 18 months from the closing date.

Stardust Solar paid finder's fees of $25,427.50 in cash and issued 339,033 finder warrants in connection with the first tranche. The finder warrants carry the same terms as the unit warrants.

The company plans to close additional tranches of the offering in the coming weeks, subject to regulatory approvals. The revised offering has a maximum of 20,000,000 units for gross proceeds up to $1,500,000.

Net proceeds will be used to repay outstanding principal and accrued interest on the company's senior secured convertible debenture units, advance its utility-scale energy project in Zambia, and for general working capital and corporate purposes.

All securities issued are subject to a statutory hold period of four months and one day from the issuance date under Canadian securities laws and TSX Venture Exchange policies.

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