Robix Alternative Fuels Inc. has increased the size of and closed its previously announced non-brokered private placement of units. Robix issued 1,775,429 units at a price of $0.33 per unit, for gross proceeds of $585,892. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to acquire one additional common share at a price of $0.45 per share for a period of two years after the closing. If, at any time, the closing price of the common shares on the Canadian Securities Exchange is at least $0.54 for a minimum of 10 consecutive trading days (whether or not trading occurs on all such days), the Corporation may, at its option, accelerate the expiry date of the warrants by giving written notice thereof to all holders of warrants, and, in such case, the warrants will expire on the date which is the earlier of: (i) the 30th day after the date on which such written notice is given by the Corporation; and (ii) the original expiry date.
Finder’s acting in connection with the private placement received aggregate fees of $44,681.93 and an aggregate amount of 135,400 finder’s warrants. Each finders warrant entitles the holder to purchase one common share at a price of $0.33 for a period of two years after the closing.
Robin Ray, the Chief Financial Officer and a director of Robix, subscribed for 90,909 units and David Edwards, a director of Robix, subscribed for 22,272 units under the private placement. Robix has determined that exemptions from the various requirements of Multilateral Instrument 61-101 are available for the issuance of the units (Formal Valuation – Issuer Not Listed on Specified Markets; Minority Approval – Fair Market Value Not More Than 25% of Market Capitalization).
All securities issued in connection with the offering are subject to a hold period that expires on September 7, 2014. The net proceeds from the offering will be used to finance the Corporation’s continuing capital program and for general working capital purposes.
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