logo-loader

Trutrace Technologies closes over-subscribed non-brokered private placement for gross proceeds of $1.5 million

Published: 07:45 15 Feb 2021 EST

Applied DNA Sciences - Trutrace Technologies closes over-subscribed non-brokered private placement for gross proceeds of $1.5 million
Proceeds from the placement will be used to advance Trutrace's long-term international strategy of providing blockchain secured and standardized process for managing testing and quality data of medical products

Trutrace Technologies Inc. (CVE:TTT) (OTCMKTS:TTTSF) said on Friday that it had closed an over-subscribed non-brokered private placement of 30 million units of the company at a price of 5 cents per unit for gross proceeds of $1.5 million.

Each unit consists of a common share of Trutrace and one non-transferable common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share for a period of 24 months from closing at a price of five cents.

The company said proceeds from the placement will be used to advance Trutrace's long-term international strategy of providing blockchain secured and standardized process for managing testing and quality data of medical products, as well as general working capital.

READ: TruTrace Technologies and Applied DNA Sciences join forces to deliver complete cannabis product validation and authentication platform

The group added that strong interest from new sophisticated investors, both local and international, the uptake by many of the existing shareholders and by Trutrace management meant that the non-brokered placement was oversubscribed. The company said it is now well-financed to advance its core initiatives and implement a revenue-focused strategy.

In a statement, Trutrace chief executive officer Robert Galarza commented: "The success of this $1.5-million oversubscribed capital raise indicates a strong level of capital market confidence in the potential of TruTrace, and specifically the importance of quality and traceability in the emerging global cannabis sector. In this new year, we will be focusing on expanding new strategic partnerships and delivering on our promise to facilitate an ecosystem of trust and transparency in order to meet the growing needs of jurisdictions around the world.

"We welcome our new investors and appreciate the ongoing support of current investors in this latest successful capital raise. Trutrace is now well funded; I believe we are poised for success in 2021 and beyond."

All securities issued in connection with the placement will be subject to a statutory hold period expiring four months and one day after the closing of the placement in accordance with applicable securities legislation.

The company said it has paid an aggregate of $29,100 and issued an aggregate of 384,000 broker warrants in connection with the closing of the placement. Each broker warrant entitles the holder to purchase one additional share at a price of 5 cents per share for a period of two years from closing of the placement.

Trutrace is the developer of a fully-integrated software platform, secured on the blockchain, offering clients the ability to store, manage, share and immediately access quality assurance and testing details, COAs, as well as motion and movement intelligence on inventory. The platform was specifically designed to power the traceability of testing standards within the legal cannabis, nutraceutical, food and pharmaceutical space, with a focus on the authentication of source materials or ingredients used in formulation.

Contact the author at jon.hopkins@proactiveinvestors.com

TruTrace Technologies agrees to partnership with Laava focussing on...

TruTrace Technologies CEO Robert Galarza joined Steve Darling from Proactive to share news the company has entered into a strategic partnership with Australian technology company Laava to drive product provenance and traceability. Galarza telling Proactive this agreement will allow both...

on 2/12/21