Montreal — HPQ Silicon Resources Inc. TSX-V: HPQ; FWB: UGE; Other OTC: URAGF; announces that it closed a non-brokered private placement of 3,000,000 units (“Unit”) at $0.07 per Unit for gross proceeds of $210,000.
“Manufacturing Silicon (Si) samples for emerging Li-ion batteries opportunities identified during the latter part of 2019 required additional investments. This financing gives us the flexibility needed to accelerate our battery-related R&D efforts in early 2020,” said Bernard Tourillon, President & CEO of HPQ Silicon.
“Being able to attract this level of unsolicited investor interest, during the worst period of the year to raise hard cash funding, gives us great confidence about 2020 as we strive to deliver the critical Silicon material required by the surging Li-ion battery market in 2020 and beyond.”
Placement Terms: Each Unit is comprised of one (1) common share and one (1) common share purchase warrant (“Warrant”) of the Company. Each Warrant will entitle the Subscribers to purchase one common share of the capital stock of the Company at an exercise price of $ 0.10 for a period of 36 months from the date of closing of the placement. Each share issued pursuant to the placement will have a mandatory four (4) month and one (1) day holding period from the date of closing of the placement. The Placement is subject to standard regulatory approvals.
In connection with the placement, the Company will pay cash finder’s fee of $15,358 to StephenAvenue Securities Inc. (“StephenAvenue”) of Toronto, Ontario. The Company will also issue 219,400 warrants to StephenAvenue. Any share purchased through the exercise of the warrants has the mandatory four (4) month and one (1) day holding period from the date of closing of the placement and each warrant gives StephenAvenue the right to purchase one (1) common share at $0.10 for 36 months following the closing of the Placement.
Mrs. Noëlle Drapeau, HPQ Corporate Secretary, and a Director has subscribed for 100,000 Units. Following the completion of the Private Placement, Mrs. Drapeau will beneficially own or exercise control or direction over, directly or indirectly, 1,778,416 Common Shares, representing approximately 0.77% of the issued and outstanding Common Shares of the Company.
The participation of Mrs. Drapeau in the Private Placement constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and Policy 5.9 – Protection of Minority Security Holders in Special Transactions of the Exchange. In connection with this related party transaction, the Company is relying on the formal valuation and minority approval exemptions of respectively subsection 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the portion of the Private Placement subscribed by Mrs. Drapeau does not exceed 25% of the Company’s market capitalization. The Board of directors of the Company has approved the Private Placement, including the participation of Mrs. Drapeau therein, with Mrs. Drapeau abstaining with respect to his participation.