Agoracom Blog

Xylitol Canada Announces $1.65 Million Placement and Material Insider Participation

Posted by AGORACOM-JC at 4:43 PM on Tuesday, September 30th, 2014

TORONTO, ONTARIO–(Sept. 30, 2014) – Xylitol Canada Inc. (“Xylitol Canada“, or the “Company“) (TSX VENTURE:XYL) is pleased to announce today that it has completed a private placement of 6,600,000 common shares at an issuance price of $0.25 per common share for aggregate gross proceeds of $1,650,000 (the “Placement“). The issuance price per share was determined based on the volume-weighted average price of the common shares on the TSX Venture Exchange for the 20 days prior to closing.

Proceeds from the Placement will be used to fund xylose plant development initiatives including engineering, design, process optimization, and general overhead requirements associated with the xylose plant project(s). In addition, a portion of the proceeds will be deployed to bolster the working capital base of the Company’s growing product division.

All common shares issued pursuant to the Placement are subject to a hold period of four months from the closing date in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws.

Tom Kierans, a director of the Xylitol Canada, and Dundee Agricultural Corporation, which now holds 27.55% of the Company’s issued and outstanding common shares, each participated in the Placement. “I would like to thank both Tom Kierans and Dundee for their continued confidence and support as investors,” stated Andrew Reid, President and Chief Executive Officer of the Company.

Because insiders of the Company subscribed for all of the common shares issued under the Placement, the Placement is considered to be a related party transaction as defined under Multilateral Instrument 61-101 (“MI 61-101“). The Placement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of the Company’s market capitalization. The Company has not filed a material change report prior to the closing of the Placement as details of participation of the insiders had not been finalized prior to today.

About Xylitol Canada Inc.

Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America.

Xylitol Canada’s business strategy is to leverage novel proprietary technology and processes to become North America’s premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is an all-natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

 

Xylitol Canada Inc.
Andrew Reid
416-288-1019

Xylitol Canada Inc.
Matt Willer
303-991-1999
[email protected]

Tags: , , ,

Comments are closed.