ARHT RAISES GROSS PROCEEDS OF $7.5 MILLION AS PART OF THE OFFERING
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Toronto, ON – February 12, 2018: ARHT Media Inc. (the “Company” or “ARHT”) (TSX-V:ART), creators of digital human holograms called HumaGrams, is pleased to announce the closing of the third and final tranche (the “Third Tranche”) of its previously-announced non-brokered private placement financing (the “Offering”). ARHT issued 8,711,094 units at a price of $0.40 per unit (the “Units”), for gross proceeds of $3,484,437.60 in the Third Tranche. The total gross proceeds of the Offering (tranches 1, 2 and 3) was $7,500,000 and ARHT issued a total of 18,750,000 Units.
Each Unit is comprised of one common share (a “Share”) and one-half of one common share purchase warrant. Each whole warrant (a “Warrant”) will entitle the holder thereof to purchase one additional Share (a “Warrant Share”) at an exercise price of $0.60 per Warrant Share for a period of two years from the date of closing of the Offering. If at any time after four months and one day from the closing date the common shares of ARHT trade at $0.80 per common share or higher (on a volume weighted adjusted basis) for a period of 20 consecutive days, the Company will have the right to accelerate the expiry date of the Warrants to a date that is 30 days after the Company issues a news release announcing that it has elected to exercise this acceleration right.
The securities issued in connection with the Third Tranche are subject to statutory resale restrictions which expire on June 10, 2018. Closing of the Offering is subject to receipt of regulatory approval, including final TSX Venture Exchange approval. In connection with the Third Tranche, ARHT paid finder’s fees of $180,000 and issued 450,000 non-transferable finder’s warrants (“Finder Warrants”). ARHT paid a total of $308,526 in finder fees and issued a total of 771,315 Finder Warrants as part of the Offering (tranches 1, 2 and 3). Each Finder Warrant will entitle the holder thereof to purchase one ARHT share at a price of $0.60 for a period of 24 months from the date of the closing of the relevant tranche.
The proceeds from the Offering will be used for general working capital purposes and to acquire equipment related to the business.
About ARHT Media
ARHT’s patented Augmented Reality Holographic Telepresence technology is the world’s first complete end-to-end solution for the creation, transmission, and delivery of lifelike digital human holograms, known as HumaGrams™. The Company’s technology is protected by U.S. Patent No. 9,581,962.
Connect with ARHT Media
ARHT Media trades under the symbol “ART” on the Toronto Venture Stock Exchange.
ARHT Media Public Relations
+1 416 861 5875
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the Offering, use of proceeds of the Offering and conditions to closing of the Offering. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.
NEITHER THE TSX VENTURE EXCHANGE 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.