Calgary, Alberta--(Newsfile Corp. - June 14, 2013) - Algae Biosciences Corporation (TSXV: ABV) ("AlgaeBio") is pleased to announce that it has successfully closed its previously announced non-brokered private placement (the "Private Placement") of units of the Corporation ("Units"), with each Unit consisting of one common share ("Share") of AlgaeBio and one full common share purchase warrant ("Warrant"). Each Warrant entitles the holder thereof to acquire one Share at a price of $0.10 for a period of 60 months following the closing date. The Corporation closed the first tranche of the Private Placement on June 3, 2013, issuing 150,000 Units for gross proceeds of $7,500. The Corporation closed the second tranche of the Private Placement on June 11, 2013, issuing 5,013,000 Units for gross proceeds of $250,650.
The Shares issued under the first tranche are subject to a hold period applicable under securities law until October 4, 2013. The Shares issued under the second tranche are subject to a hold period applicable under securities law until October 12, 2013.
AlgaeBio intends to use the proceeds from the Private Placement to fund working capital and the purchase of equipment.
AlgaeBio paid a finder's fees to eligible persons on a portion of the Private Placement consisting of a cash payment equal to 10% and the issuance of finder's warrants ("Finder's Warrants") equal to 10% of the gross proceeds raised from applicable subscriptions in the Private Placement. Each Finder's Warrant entitles the holder to acquire one additional Unit at a price of $0.10 for a period of 24 months from the closing date of the Private Placement (the "Closing Date"). In aggregate, a total of 516,300 Finders Warrants were issued and a commission of $25,815 was paid.
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ABOUT ALGAE BIOSCIENCES CORPORATION: AlgaeBio is a Canadian biotechnology company that researches, develops, and manufactures products from micro and macro algae such as nutraceuticals, food additives, and pharmaceuticals. With access to algae growing conditions, exclusive aquaculture access to a brine water supply, and advanced proprietary technology, AlgaeBio produces human and animal consumable products, as well as offering advanced algae-based products and technologies for distribution. AlgaeBio owns and operates production facilities near Holbrook, Ariz., and is listed on the TSX Venture Exchange (TSXV: ABV).
For more information:
Robert J. Thompson
Chairman of the Board
Algae Biosciences Corporation
E-mail: investorrelations@algaebio.com
Forward-Looking Information
This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the use of proceeds from the Private Placement. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include the failure to obtain final approval from the TSX Venture Exchange. Although the Corporation believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Corporation disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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