Radient announces brokered private placement for proceeds of $6 Million

Radient Technologies (TSX-V: RTI) has announced a brokered private placement for up to $6 million, with Aurora Cannabis participating as a lead investor.

Radient  has entered into an agreement with Canaccord Genuity Corp. (the “Agent”) with respect to a brokered private placement of up to 13,333,333 units (the “Units”) at $0.45 per unit for aggregate proceeds of up to $6 million (the “Offering”) to be conducted on a commercially reasonable efforts basis, subject to satisfactory due diligence. The Agent has also been granted the option (the “Over-Allotment Option”) to purchase up to an additional 15% of the number of Units issuable under the Offering.

Aurora has advised Radient that it intends to participate in the Offering in an amount up to $1.25 million, approximately 22% of the total proceeds.

The proceeds of the Offering will be used for the acquisition of analytical and production equipment, improvements to the plant to accommodate cannabinoid production and general working capital.

Each Unit is comprised of one common share of Radient (a “Common Share”) and one half Common Share purchase warrant (each whole warrant, a “Unit Warrant”), with each whole Unit Warrant entitling the holder to subscribe for one additional Common Share at a price of $0.70 per Common Share until the date that is 24 months from the date of issuance.

As compensation for its services, Radient will issue to the Agent that number of non-transferable common share purchase warrants (“Broker Warrants”) equal to 7% of the total number of Units sold under the Offering (including any Units issued upon exercise of the Over-Allotment Option), other than in respect of orders from “president’s list” purchasers on which the Agent will receive Broker Warrants equal to 3.5% of the Units sold.  Each Broker Warrant will entitle the Agent to acquire one Unit at an exercise price of $0.45 for a period of 24 months following the completion of the Offering. The Agent will also receive a cash commission of up to 7% of the gross proceeds of the Offering (including in respect of any exercise of the Over-Allotment Option), other than in respect of orders from “president’s list”, purchasers on which a reduced commission will be paid and will comprise of finders fees in accordance with the policies of the TSX Venture Exchange.

The Offering is subject to the receipt of all necessary approvals, including the final approval of the TSX Venture Exchange. All securities issued in connection with the Offering are subject to a statutory four-month hold period.