CERRITOS, CA, March 13, 2014 /CNW/ - California Nanotechnologies Corp. ("Cal Nano" or the "Company") is pleased to announce a proposed non-brokered private placement of up to 6,666,666 units of the Company at a price of $0.135 per unit for aggregate gross proceeds of up to $900,000. Each unit consists of one common share in the capital of the Company (a "Common Share") and one-half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one additional common share at a price of $0.225 per share for a period of twelve months from the date of issue. All of the securities issued under the private placement will be subject to a minimum four month hold period and will contain a legend which will detail the resale restriction.
In connection with this private placement, Cal Nano may pay a cash finder's fee equal to 7% of the funds raised to eligible finders who introduce subscribers to the private placement. The proceeds of this private placement are expected to be used for equipment purchases to support a major potential program and for general working capital purposes. The private placement is subject to approval from the TSX Venture Exchange.
Certain insiders of the Company are expected to participate in the offering but will not subscribe for more than 25% of the private placement."This financing will allow the Company to more aggressively pursue high-volume sales opportunities in a growing market place," stated Christopher Melnyk, CEO. "In particular, these funds will permit the acquisition of larger scale equipment to meet growing industry demands." Reader Advisory Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "budget", "scheduled", "estimates", "forecast" and other similar words or variations thereof, or statements that certain events or conditions "may", "could", "would", "might" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the proposed private placement of units, the expected participation by insiders and the use of proceeds. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: additional funding required by the Company on an ongoing basis; market competition against third parties with greater financial and human resources; the protection of the Company's intellectual property rights; costs of production; capital expenditures; requirements for additional capital; failure of equipment or processes to operate as anticipated; delays in obtaining regulatory approvals, claims limitations on insurance coverage; risks associated with international operations; risks related to material customer agreements; fluctuations in the currency markets; and changes in national and local government legislation, controls, regulations and political or economic developments in Canada, the United States or other countries in which the Company may carry on business in the future. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information. NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. SOURCE California Nanotechnologies Corp.