Sparta Capital Ltd. Announces Closing of Non-Brokered Private Placement of Convertible Debentures
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Calgary, Alberta (FSCwire) - Sparta Capital Ltd. (TSXV: SAY.H) (the “Corporation” or “Sparta”) is pleased to announce that it has closed the non-brokered private placement (the "Offering") of unsecured convertible debentures ("Debentures") previously announced on September 14, 2017. The Offering has resulted in gross proceeds to the Corporation of $365,000. The proceeds of the Debenture issuance will be used for short-term working capital and general corporate purposes to support planned expansion of operations including graduation to the TSX Venture Exchange Inc. (“Exchange”).
Pursuant to the Offering the Corporation issued Debentures at an issue price of $5,000 per Debenture, maturing one year from the date of issuance and bearing interest at a rate of 8.0% per annum, payable semi-annually in arrears. Each Debenture is convertible at the option of the holder at any time prior to redemption or maturity (as the case may be), entitling the holder to acquire one unit (each a "Unit") at an exercise price of $0.05 per Unit. Each Unit will be comprised of one common share in the capital of the Corporation (each a "Common Share") and one share purchase warrant (each a “Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share for $0.05 per Common Share expiring twelve (12) months from the date of issuance of the Debentures. Holders converting their Debentures will receive accrued and unpaid interest thereon, up to, but not excluding, the date of conversion.
The Debentures, Common Shares and Warrants issued upon conversion thereof will be subject to a four month and one day hold period from the date of issuance of the Debentures in accordance with applicable securities laws and the policies of the Exchange.
The Corporation may redeem the Debentures for cash at any time prior to the maturity date, in whole or in part, from time to time without bonus or penalty, at a redemption price equal to the Debentures principal amount plus accrued and unpaid interest, if any.
The Corporation has not paid any finders’ fees in cash or securities of the Corporation in connection with the Offering.
The Offering is subject to regulatory approval, including but not limited to final approval of the NEX, a separate board of the Exchange.
Sparta Capital Ltd. fosters and distributes a range of energy efficient solutions. Following the acquisition of Canadian based Newport Environmental Technologies Ltd. (“Newport”) Sparta continued the process of securing several other licenses for technologies developed to save fuel, while reducing carbon emissions in various markets. Since the acquisition of Newport, Sparta established three new divisions: Sparta Technologies 4 Mining Ltd; to cater to the special needs of the mining industry, Illumineris Inc., a division with a comprehensive suite of smart-building, energy-optimizing technologies; including a line of glow-in-the-dark safety products, and ReECO Conversion Technologies Ltd; a biomass conversion division. In addition, Sparta recently acquired Supernova Performance Technologies Ltd., who focuses on green initiatives for the transportation sector. For a closer look at the company profile, please visit: Sparta Environmental Technologies.
For further information please contact:
John O’Bireck, President
Telephone: (905) 751-8004
This news release contains “forward-looking information” within the meaning of applicable securities laws relating to completion of the Offering and any associated transactions, including statements regarding the terms and conditions of the Offering. When used in this news release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, readers are cautioned to not place undue reliance on forward-looking information because the Corporation can give no assurance that they will prove to be correct. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date of publication of this news release and the Corporation undertakes no obligation to update such forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Furthermore, the Corporation undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Corporation.
Neither TSX Venture Exchange Inc. (nor any of its separate boards which includes the NEX) nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this release.
The Common Shares that may be issued on conversion of the Debentures or the exercise of Warrants, in each case pursuant to the Offering, will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. 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 jurisdiction in which such offer; solicitation or sale would be unlawful.
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Source: Sparta Capital Ltd. (TSX Venture:SAY.H)
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