Strong participation from the board of directors, executive team complemented with a number of high-profile investors result in gross proceeds of $1.6 million
NOT FOR RELEASE OR DISSEMINATION INTO THE UNITED STATES
TORONTO, Jan. 30, 2020 (GLOBE NEWSWIRE) — ARHT Media Inc. (“ARHT” or the “Company”) (TSXV:ART), the global leader in the development, production and distribution of high-quality hologram content through its patented Holographic Telepresence technology, is pleased to announce that pursuant to its news release issued on January 14, 2020, the Company has successfully closed the private placement (the “Private Placement”) of secured debentures (the “Debentures”) for total gross proceeds of $1.6 million, representing an aggregate of $1,744,000 principal amount of Debentures.
“I would like to thank our board member and leadership team for their continued confidence in our growth strategy and supporting our capital requirements,” said Larry O’Reilly, CEO of ARHT Media Inc. “On behalf of all of us at ARHT, I would also like to welcome the new group of investors who participated in this round of financing, and look forward to sharing our successes in the coming quarters, as we continue to see more traffic and traction tied with our growth objectives.”
The Debentures are issued at a price of $0.9175 for each $1 of principal amount subscribed for, representing a 12% discount to the debentures’ principal amount over a nine-month period. The debentures will be redeemed at their principal amount for cash on the date which is nine months and one day following the closing date of the offering (the “Maturity Date”). If, prior to the Maturity Date, either (i) the Company completes a private placement financing (other than the Private Placement) that raises gross proceeds of no less than $4 million, or (ii) if a change of control of ARHT or a sale or disposition by ARHT of all or substantially all of its assets should occur, then the Maturity Date will be accelerated to such earlier date.
The Debentures are secured by way of a general security agreement made in favour of a collateral agent acting as agent for all of the holders of the Debentures, granting a security interest in substantially all of ARHT’s assets. The Company will have the right to prepay any or part of the Debentures at any time prior to the Maturity Date by paying the principal amount of the Debentures.
Subscribers for the Debentures received a one-half common share purchase warrant (the “Warrants”) for each $1 invested, resulting in an aggregate of 800,000 Warrants being issued on closing of the Private Placement. Each Warrant entitles the holder thereof to purchase one common share of the Company (a “Warrant Share”), at an exercise price of $0.15 per share for a period of nine months following the closing of the Private Placement (the “Expiry Date”). If, at any time after the date that is four months and one day following the closing date of the Private Placement, the closing price of the outstanding Common Shares is greater than $0.25 for a period of 20 consecutive trading days, the Company may, at its option, accelerate the expiry date of the Warrants to the date that is the earlier of: (i) the 30the day after the Company gives notice to the holders of the Warrants, or (ii) the original Expiry Date.
The Debentures and the Warrants are subject to a four-month statutory hold period commencing on the date of their issuance. Subject to the foregoing, the Debenture may not be assigned, transferred or resold, except upon the prior written consent of the Company. The Warrants may not be assigned, transferred or resold, except upon the prior written consent of the Company and the TSX Venture Exchange. The Company may pay finder’s fees in accordance with TSX Venture Exchange policies.
The Company intends to use the net proceeds from the Private Placement to increase sales and marketing activity, to develop and bring to market Holopod, to increase the inventory of event delivery kits to service growing demand, and for general working capital purposes.
About ARHT Media
ARHT Media’s patented holographic telepresence technology is a complete end-to-end solution that creates a sense of presence for audiences – as though the holographic presenter was actually live in the room. With no noticeable latency, ARHT Media makes two-way live communication with a 3D holographic presenter anywhere in the world possible. We can also playback pre-recorded content and 3D animations on our displays to deliver rich holographic experiences.
ARHT Media trades under the symbol “ART” on the Toronto Venture Stock Exchange.
ARHT Media Press Contact
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, disclosure related to the Company’s sales funnel; the Company’s technology; the potential uses for the Company’s technology; the future planned events using the Company’s technology; the future success of the Company; the ability of the Company to monetize the HumaGram™ technology; the development of the Company’s technology; and interest from parties in ARHT’s products. 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.
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.