MGX Renewables Inc. (CVE:MGXR) said it has arranged a non-brokered private placement to raise total gross proceeds of up to $3,000,000 to be used for general working capital.
In a statement, the company noted that the placement will consist of up to 14,285,714 units at a price of $0.21 per unit. It said each unit will consist of one common share and one transferable share purchase warrant which is exercisable for a period of two years at a price of $0.25 in the first year from the date of issuance and at a price of $0.40 for the balance of the term.
All securities issued in respect of the private placement will be subject to a hold period of four months and a day from closing, in accordance with securities laws, the group added.
MGX Renewables also announced the grant of up to 4,688,000 incentive stock options to directors, officers, employees and consultants of the company.
It said each option shall permit the holder thereof to purchase one common share at a price of $0.21 per share up to the earlier of five years from the date of the grant and the termination of the options, which shall vest immediately.
The group pointed out that the proposed grant of the options shall replace the previously announced but unissued incentive stock options described in the company’s news release dated July 19, 2019.
MGX Renewables has developed the MGXR ESS, a modular energy storage system designed to deliver power in the range 20kW-50MW and energy storage in the range of 120kWh-1GWh over extended periods of time, as an alternative to the fixed power/energy ratio of the lithium ion battery.
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