Syntholene Energy closes $2.3M non-brokered private placement

Syntholene Energy Corp. (TSXV: ESAF) (FSE: 3DD0) (OTCQB: SYNTF) has closed the final tranche of a non-brokered private placement, raising approximately $2.3 million in aggregate gross proceeds, according to a company statement.

The offering consisted of 5,148,543 units priced at $0.45 per unit. Each unit included one common share and one-half of a non-transferable common share purchase warrant. Each full warrant allows the holder to acquire one common share at $0.63 for two years from issuance, subject to an acceleration provision if the daily trading price of common shares reaches or exceeds $0.90 on the TSX Venture Exchange for ten consecutive trading days.

The company said proceeds will be used for testing and production at its demonstration facility in Húsavík, Iceland, and for general working capital.

Canaccord Genuity Corp. acted as fiscal advisor in connection with the offering. Canaccord received a cash commission of $44,156 and was issued 111,111 common shares, 55,555 warrants, and 98,124 broker warrants, each exercisable at $0.45 per share for two years. Other finders received 63,137 broker warrants and aggregate cash commissions of $46,664, including a $18,252 commission paid to Milestone Capital Partners.

The offering constitutes a related party transaction under Multilateral Instrument 61-101, as director and officer John Kutsch acquired 78,333 units for $35,249. The company said the transaction qualifies for exemptions from formal valuation and minority shareholder approval requirements. All securities issued are subject to a statutory hold period of four months and one day from the date of issuance.

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