EDMONTON, Alberta, Jan. 26, 2018 (GLOBE NEWSWIRE) -- Visionstate Corp. (TSX VENTURE:VIS) ("Visionstate" or the "Company") is pleased to announce that the non-brokered private placement financing (“Private Placement”) announced on January 19, 2018 has received conditional acceptance from the TSX Venture Exchange to close on and issue up to 20,000,000 units (“Units”) of which Visionstate has closed on the initial tranche of subscriptions for a total of 10,000,000 Units at a price of $0.05 per Unit for gross proceeds of $500,000. Each Unit is comprised of one (1) common share in the capital of the Company (“Common Share”) and one (1) Common Share purchase warrant (“Warrant”). Each Warrant entitles the holder to purchase one (1) additional Common Share at a price of $0.075 per Common Share for a period of two (2) years following the date of closing (the “Term”). In the event the Common Shares close at a price of greater than $0.15 per Common Share for a period of greater than twenty (20) consecutive trading days, then the Term of the Warrants shall be automatically accelerated and shortened from two (2) years to thirty (30) calendar days following the date a press release is issued by the Company announcing the reduced Term, and a press release stating this fact shall be deemed to be sufficient notice to all warrant holders of the shortened Term as a result of the acceleration.
In connection with the Private Placement, Visionstate has relied on the existing security holders exemption as well as other available prospectus exemptions. For those investors relying upon the exemption for existing security holders, the aggregate acquisition cost to a subscribing shareholder of all securities of Visionstate did not exceed $15,000 in the previous 12 months, unless that shareholder obtained advice regarding the suitability of the investment from a registered investment dealer in the subscriber’s jurisdiction. The offer to purchase Units was available to all security holders of Visionstate who held Common Shares on the record date of January 15, 2018. Shareholders resident in Ontario, Newfoundland and Labrador, and countries other than Canada needed to meet local jurisdiction requirements to participate. If Visionstate had received total subscriptions pursuant to the existing security holders exemption which caused the Private Placement to exceed $1,000,000, then Visionstate would have accepted such subscriptions on a first come, first served basis.
Visionstate intends to use the proceeds from this initial tranche of the Private Placement as follows: $300,000 for the acquisition of Cranky Dwarves as per the January 16, 2018 press release; $250,000 for technology development; and $250,000 towards general working capital. There is no minimum offering.
In addition, Visionstate has paid a finder's fee in connection with this initial closing. The finder was paid a cash sum of 8%.
The securities issued under the Private Placement are subject to a four-month hold period from the time of closing of the Private Placement.
About Visionstate Inc.
Visionstate Inc., a division of Visionstate Corp. (TSX Venture:VIS), specializes in the Internet of Things and analytics. The Company’s core product, WANDA, is a 10/15 inch smart device used to monitor restroom cleaning, supplies, and maintenance activities. WANDA is installed in locations throughout North America and Europe, including hospitals, airports, office buildings, public facilities and shopping centers.
More information can be found at visionstate.com
Forward Looking Statements
This news release may include certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with Visionstate’s business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend" and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect Visionstate’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Visionstate assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.
Contact:
John Putters, CEO
Visionstate Inc.
Ph: 780-425-9460
Email: jputters@visionstate.com
