Ellipsiz Communications Ltd. Announces Closing of Private Placement Financing
TORONTO, ONTARIO – January 10, 2020 – Ellipsiz Communications Ltd. (formerly NXA Inc.) (TSXV: ECT) (the “Company” or “ECL”) wishes to announce that it has entered into agreements to complete a non-brokered working capital unit private placement raising proceeds of $120,000 (the “Offering”). The Company is placing 2,400,000 units (each a “Unit”) at a price of $0.05 per Unit subject to receipt of final approval from the TSX Venture Exchange.
Each Unit consists of one common share of the Company and one (1) common share purchase warrant (a “Warrant”). Each WC Warrant entitles the holder to acquire an additional common share at $0.05 per share until two (2) years from the closing of the Offering.
All securities issued pursuant to the above referenced private placement are subject to a four month hold period expiring on May 11, 2020.
One insider of the Company subscribed for 1,000,000 Units of the Offering. The insider private placement is exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 (“MI 61-101”) by virtue of the exemptions contain in section 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company to be issued to the insiders does not exceed 25% of its market capitalization.
Neither the Exchange nor its Regulation Services Provider (as that term is defined in policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Eric Chan, CFO
T: 905 471-8800