Mississauga, ON - January 28, 2013 - Pioneering Technology Corp. (the "Company") (TSXV: PTE) is pleased to announce that it has completed the non-brokered private placement financing announced on December 14, 2012 for gross proceeds of $750,000 (the "Private Placement"). The proceeds of the Private Placement will be used by the Company for working capital and to fund final stage development and launch of new products.
Pursuant to the Private Placement, the Company issued a total of 7,500,000 units (each, a "Unit"), at a price of $0.10 per Unit. Each Unit consists of one common share of the Company (each, a "Common Share") along with one-half of one Common Share purchase warrant (each, a "Warrant"). Each whole Warrant may be exercised for one additional Common Share at a price of $0.15 per Common Share until January 28, 2015. No commissions or finder's fees were paid in connection with the Private Placement.
The Units were issued pursuant to exemptions from prospectus requirements of applicable securities legislation. Securities issued pursuant to the Private Placement are subject to a hold period that expires on May 29, 2013.
Certain insiders of the Company participated in the Private Placement. Subscriptions from such insiders are considered to be related party transactions within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 ("MI 61-101"). The Company relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(a) of MI 61-101 in respect of such insider participation.
McAllister Holdings Ltd., a company controlled by David Dueck, a director of the Company, purchased 2,500,000 Units in the Private Placement. After giving effect to this subscription, Mr. Dueck owns or controls, directly or indirectly, a total of 8,662,127 Common Shares, representing approximately 33% of the Company's 26,133,155 issued and outstanding Common Shares, together with options and warrants to acquire an additional 1,390,000 Common Shares.
About Pioneering Technology Corp: Pioneering, based in Mississauga, Ontario is an "Energy Smart" product innovation/consumer goods company and North America's leader in cooking fire prevention technology. Pioneering engineers and brings to market energy smart solutions for consumer products making them safer, smarter and/or more efficient. Pioneering's patented and patent pending Safe-T-element(R) cooking system is engineered to help prevent stove top cooking fires, the number one cause of fire in North America, and to reduce the amount of electricity required to cook. Available on new ranges or as a retrofit, the STE technology is installed on over 80,000 ranges in multi-residential housing (low income, seniors, college/university and military) throughout the world. Pioneering trademarks include Safe-T-element(R), Safe-T-Sensor(TM), Powergrill(TM), Battery Eliminator(R), Powerpak(TM) and the Hydro-free Furnace Fan(TM). For more information visit: www.pioneeringtech.com.
For further information contact: Kevin Callahan, President & CEO at (905) 712-2061 ext. 222.
Forward Looking Statements
The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in the Corporation's target markets, the demand for the Corporation's products, the availability of funding, the efficacy of the Corporation's technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Corporation's expectations and projections.
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.
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