Victoria, British Columbia--(Newsfile Corp. - January 27, 2025) - ALUULA Composites Inc. (TSXV: AUUA) ("ALUULA" or the "Company") is pleased to announce that, further to its news release dated December 16, 2024, the Company has successfully closed its rights offering (the "Rights Offering"), raising the maximum amount permitted under the offering for gross proceeds of $2,506,156.16. The Rights Offering achieved a 96% exercise rate under the basic subscription privilege, and the additional subscription privilege was oversubscribed by 301,180,394 common shares. As a result, the Rights Offering closed without requiring the exercise of the Standby Commitment (as defined below).
At closing, the Company issued an aggregate of 250,615,616 common shares of the Company (the "Shares") pursuant to the Rights Offering. Following closing, ALUULA has 501,231,239 Shares issued and outstanding. The Rights Offering expired at 2:00 p.m. PST on January 21, 2025, at which time all unexercised rights became void and of no value.
Of the 250,615,616 Shares issued, 240,982,385 Shares were issued pursuant to exercise of the basic subscription privilege, and 9,633,231 Shares were issued pursuant to the exercise of the additional subscription privilege. In aggregate, the Company issued approximately 139,779,693 Shares to insiders of the Company, 134,905,520 under the basic subscription privilege and approximately 4,874,173 under the additional subscription privilege, for an aggregate purchase price of approximately $1,397,796.93. To the knowledge of the Company, no person that was not an insider or control person of the Company before the Rights Offering became an insider or control person as a result of the Rights Offering.
As previously announced, the Company entered into a standby commitment agreement with certain directors and officers of the Company ("Standby Purchasers") who agreed to purchase up to 150,000,000 Shares, in the event that the Rights Offering was not fully subscribed (the "Standby Commitment"). As consideration for entering the Standby Commitment, the Company has issued 26,250,000 bonus warrants ("Bonus Warrants") to the Standby Purchasers. Each Bonus Warrant is exercisable into one Share at a price of C$0.10 per Share until January 24, 2030.
ALUULA intends to use the aggregate gross proceeds of the Rights Offering to repay indebtedness, purchase equipment for use in research and development and production, investigate alternative manufacturing methods, and for working capital and general corporate purposes. No fees or commissions were paid in connection with the Rights Offering. Further details of the Rights Offering are set out in ALUULA's Rights Offering notice and Rights Offering circular, which are available under ALUULA's profile on SEDAR+ at www.sedarplus.com.
Sage Berryman, President and CEO of ALUULA said, "We are pleased with the outcome of the Rights Offering and the strong interest shown in our stock. This is a clear indication of the confidence in ALUULA's products, strategy and future. The successful transaction marks a key step for us as we continue our focused efforts to grow the business and we are grateful for our shareholders' backing throughout this process."
The Shares issued upon exercise of the rights have not been, and will not be, registered under the United States Securities Act of 1933, as amended and, accordingly, the Shares are not being publicly offered for sale in the "United States" or to "U.S. persons" (as such terms are defined in Regulation S under the United States Securities Act of 1933, as amended). This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. There shall be no sale of the securities in any jurisdiction in which an offer to sell, a solicitation of an offer to buy, or a sale would be unlawful.
About ALUULA Composites Inc.
ALUULA is an ultra-light, high performance and recycle-ready composite materials brand that enhances the performance of outdoor gear. Proudly owned and manufactured on the Canadian west coast, ALUULA's innovation is driven by a deep understanding that equipment does not need to sacrifice performance for sustainability. ALUULA's materials are known for their unique construction capabilities and their ability to make products lighter, stronger, and more sustainable.
aluula.com | (TSXV: AUUA)
On behalf of the Board of Directors,
Sage Berryman
Chief Executive Officer
1-888-724-2470
For ALUULA investor inquiries, please contact:
1-888-724-2470, ext. 4
IR@aluula.com
For ALUULA media relations, please contact:
media@aluula.com
ALUULA's Brand Partners
The term "brand partners" does not refer to formal partnerships with our customers. The term refers to marketing relationships with our customers who use ALUULA's technology as a brand ingredient in their products.
TSX Venture Exchange
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain information in this news release includes statements about management's view of future events, expectations, plans, and prospects that constitute forward-looking statements, including, but not limited to: the intended use of proceeds from the Rights Offering. These statements are based on assumptions subject to significant risks and uncertainties. Because of these risks and uncertainties, and as a result of a variety of factors, including the timing and receipt of all applicable regulatory, and corporate third-party approvals, the actual results, expectations, achievements, or performance may differ materially from those anticipated and indicated by these forward-looking statements. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statement will prove to be correct. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238397
SOURCE: ALUULA Composites Inc.
