MONTREAL, QUEBEC -- (Marketwired) -- 07/16/15 -- Earth Alive Clean Technologies (CSE: EAC) ("Earth Alive") reports that it has increased the private placement previously announced and that it has raised $1,650,000 through the issuance of 12% unsecured convertible debentures coming to maturity July 15, 2018 (the "Debentures"). The Debentures are convertible into common shares of Earth Alive (the "Shares"), at the option of the holder, on the basis of $0.20 per Share for the first and second year and $0.30 per Share thereafter. Earth Alive has the option to convert the debentures at all times if the Share price reaches $0.40 for ten consecutive trading days. Earth Alive intends to use the proceeds for general working capital purposes, R&D and the development of new markets.
Total Finder's fee paid in connection with the private placement are $1,200 and 6,000 finder warrants were issued. Such warrants entitle the holder to purchase one Share of Earth Alive, at the price of $0.20 for a period of 24 months following the closing and $0.30 for the following 12 months. All securities issued pursuant to the private placement will be subject to a hold period of four (4) months.
Certain insiders have participated in the private placement for an aggregate amount of $775,000: One Drop Investments Inc. which currently holds 15.86% (13,928,572 Shares) subscribed for the principal amount of $500,000 and Les Placements Mica3 Inc., a company controlled by Michel Ringuet, a director, subscribed for the principal amount of $275,000. Les Placements Mica3 Inc. currently holds 2.5% (2,250,000 Shares). If the insiders exercised their conversion right immediately, they would hold 16,428,572 and 3,625,000 Shares, respectively. Pursuant to Regulation 61-101 Respecting protection of minority security holders in special transactions ("Rule 61-101"), each of these transactions constitutes a "related party transaction" and as such, minority shareholder approval and a formal valuation may be required. However, the board has determined that such transactions meet the exemptions set out in Rule 61-101 (sections 5.5(a) and 5.7(a)) as the value of the transaction does not exceed 25% of the market capitalization of the Earth Alive.
About Earth Alive Clean Technologies:
Earth Alive aims to be a catalyst agent of change, and a key player, in world markets of environmentally sustainable industrial solutions. Earth Alive works with the latest innovations in microbial technology to formulate and patent innovative products that can tackle the most difficult industrial challenges, once only reserved to environmentally harmful chemicals and additives. The company is focused on environmental sustainability in 1) dust control for the mining industry, and 2) the agriculture industry.
For additional company information, please visit: www.earthalivect.com
The CSE has neither approved nor disapproved the contents of this press release. The CSE does not accept responsibility for the adequacy or accuracy of this release.
Contacts:
For media information and interview requests, please contact
Mr. David Gilmour
(p) 514-814-2899
dgilmour@earthalivect.com
For more investor related information, please contact:
Mr. Louis Graton
(p) 514 249-3134
lgraton@earthalivect.com
Earth Alive Clean Technologies Inc.
1001, Lenoir Street, Suite B-338
Montreal (Qc) Canada
H4C 2Z6
(438) 333-1680
