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EDMONTON, June 28, 2018 /CNW/ - Radient Technologies
("Radient", or the "Company") (TSX-V: RTI) is pleased to announce
that it has entered into an agreement with Canaccord Genuity Corp.
("Canaccord"), as lead underwriter on behalf of a syndicate of
underwriters (collectively, the "Underwriters"), under which the
Underwriters have agreed to purchase, on a bought deal basis,
16,700,000 units ("Units") of the Company at a price of
$1.20 per Unit (the "Offering Price")
for aggregate gross proceeds of $20,000,000 (the "Bought Deal Offering"). The
Underwriters have been granted the option (the "Over-Allotment
Option") to purchase up to an additional 2,505,000 Units,
exercisable in whole or in part, at any time up to 30 days
following the closing of the Bought Deal Offering.
Each Unit will consist of one common share in the capital of the
Company (a "Common Share") and one-half of one common share
purchase warrant (each whole common share purchase warrant, a
"Warrant"). Each Warrant shall be exercisable to acquire one
additional common share (a "Warrant Share") of the Company for a
period of two years from the closing date of the Bought Deal
Offering at an exercise price of $1.50 per Warrant Share. If, at any time
prior to the expiry date of the Warrants, the volume weighted
average price of Radient's common shares exceeds $2.25 for 20 consecutive trading days, the
Company may deliver a notice to the holders of Warrants
accelerating the expiry date of the Warrants to the date that is 30
days following the date of such notice (the "Accelerated Exercise
Period"). Any unexercised Warrants shall automatically expire at
the end of the Accelerated Exercise Period.
The Units comprising the Bought Deal Offering will be offered by
way of short form prospectus in Alberta, British
Columbia and Ontario. The
proceeds of the Bought Deal Offering and the Private Placement
(described below) will be used to upgrade the Company's main
Edmonton extraction line for
dedicated hemp extraction and purification, for additional capacity
in North America and/or
Europe and for general corporate
and working capital purposes.
In connection with the Bought Deal Offering, the Company has
agreed to pay to the Underwriters a cash commission equal to 6% of
the gross proceeds from the Bought Deal Offering (the
"Underwriters' Fee"). The Underwriters may elect to receive the
Underwriters' Fee in Units, as may be permitted by applicable law.
In addition to the Underwriters' Fee, the Company has agreed to
issue to the Underwriters compensation options (the "Compensation
Options"), exercisable at the Offering Price to purchase such
number of Units as is equal to 6% of the aggregate number of Units
sold.
In addition to the Bought Deal Offering, the Company is
arranging a concurrent private placement of Units with strategic
investors for additional aggregate gross proceeds of up to
$15 million (the "Private
Placement"). In connection with the Private Placement, the Company
may pay commission to certain finder (the "Finders") in cash, Units
and/or Compensation Options, subject to the limitations set out in
TSXV Policy 5.1 - Loans, Loan Bonuses, Finder's Fees and
Commissions. The Company may increase the size of the Private
Placement by up to 15% at its discretion.
Closing of the Private Placement is subject to receipt of
applicable regulatory approvals including approval of the TSX
Venture Exchange. Securities issued under the Private Placement
will be subject to a four month hold period which will expire four
months plus a day from the date of closing of the Private
Placement.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any state of the United
States in which such offer, solicitation or sale would be
unlawful. The securities have not been registered under the 1933
Act, and may not be offered or sold in the United States or to, or for the account or
benefit of, U.S. persons (as such terms are defined in Regulation S
under the 1933 Act) absent registration or an applicable exemption
from the registration requirements.
About Radient
Radient extracts natural compounds from a range of biological
materials using microwave assisted processing ("MAP™"), a patented
technology platform which provides superior customer outcomes in
terms of ingredient purity, yield, and cost. From its 20,000 square
foot manufacturing plant in Edmonton,
Alberta, Radient serves market leaders in industries that
include pharmaceutical, food, beverage, natural health and personal
care markets. Since 2016, Radient has expanded its offerings to
enter the cannabinoids market utilizing its MAP™ platform to
process and extract cannabinoids including cannabidiol and
tetrahydrocannabinol from cannabis biomass.
The Company, having received its Dealer's License from Health
Canada's Office of Controlled Substances for its Research &
Development Laboratory located at 8223 Roper Road in February 2018, is in the review phase of its
application to the Office of Medical Cannabis for the ACMPR
Production License (the "ACMPR License") for its manufacturing
facility located at 4035 101 St NW in Edmonton. Approval of
the ACMPR License is dependent upon, among other things, security
upgrades included in the Company's previously announced plant
expansion and optimization project, scheduled for completion in the
2nd half of 2018. The Company's application to the Office of
Controlled Substances for a Dealer's License for its manufacturing
facility is also currently under review.
Visit www.radientinc.com for more information.
This press release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Forward-looking information includes, without limitation,
statements regarding the completion of the Bought Deal Offering and
the Private Placement and the use of proceeds thereof. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might"
or "will be taken", "occur" or "be achieved". Forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of Radient, as the case may
be, to be materially different from those expressed or implied by
such forward-looking information. Although Radient has attempted to
identify important factors that could cause actual results to
differ materially from those contained in forward-looking
information, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking information. Radient does not undertake
to update any forward-looking information, except in accordance
with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Radient Technologies Inc.