Pursuant to the Offering, the Company may issue up to an aggregate of up to 11,111,112 units (the "Units") at a price of CDN$0.18 per Unit. Each Unit will consist of one common share of the Company (each, a "Share") and one-half of one common share purchase warrant (each full warrant, a "Warrant"). Each Warrant shall entitle the holder thereof to acquire one Share at a price of CDN$0.30 for a period of two years from closing of the Offering. All securities issued under the Offering will be subject to a four month hold period from the closing date under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.
The closing of the Offering is expected to occur on or about April 7, 2017 and remains subject to receipt of all necessary regulatory approvals including acceptance for filing by the TSX Venture Exchange. The Company intends to use the net proceeds of the Offering for the build of additional inventory for customer trials and general corporate and working capital purposes. A finder's fee may be paid by the Company through the issuance of finder warrants in a number equal to up to 7.0% of the Units placed with subscribers introduced by any finder under the Offering. Each finder warrant will entitle the holder to acquire one Share at the offering price.