(TheNewswire)
Vancouver, B.C., Canada - TheNewswire - November 25, 2020 - CoverTechnologies Inc. (previously Mag One Products) (the" Company " or " COVER ") announcestoday a non-brokered private placement financingof up to CDN $2,000,000 in units (each, a " Unit ") at aprice of CDN $0.32 per Unit (the " Financing ")subject to an overallotment option of up to an additional 50% of theFinancing.
Each Unit consists of one common share (a" Share ") in the capital of the Company and one-half of onetransferable common share purchase warrant (a " Warrant "). EachWarrant will entitle the holder thereof to purchase one additionalShare at a price of CDN$0.50 for a period of twelve months from theclosing date of the Financing, subject to an acceleration provisionwhereby if the Shares trade at a price on the Canadian SecuritiesExchange (or such other exchange on which the Shares may be traded atsuch time) (the " Exchange ") of CDN$0.80 or greater perShare for a period of 10 consecutive trading days after four monthsand one day from the closing of the Financing, the Company mayaccelerate the expiry of the Warrants by giving notice to the holdersthereof (by disseminating a news release advising of the accelerationof the expiry date of Warrants) and, in such case, the Warrants willexpire on the 31st day after the date of such notice.
Proceeds from the Financing are intended to be used inconnection to further the company's magnesium technology, expansion ofits disinfectant and cleaning solutions and Corporate, General andAdministrative working capital.
The Company may elect to close the Financing in one ormore tranches. It is anticipated that insiders of the Company may takepart in the private placement. The securities issued in connectionwith this Financing are subject to Exchange approval and will besubject to a restricted four-months plus one day hold period inaccordance with applicable Canadian securities laws. The Company mayelect to pay a finder's fee to eligible finders in connection withapplicable securities laws and Exchange policies in connection withthis Financing.
On behalf of the Board, " Tony Louie ", President & CEO, Cover Technologies Inc.
Neither theCanadian Securities Exchange nor its Regulation Services Provideraccepts responsibility for the adequacy or accuracy of this newsrelease.
About Cover Technologies Inc.
Cover TechnologiesInc. is an industrial products andsolutions company. Cover Technologies has expanded its lines ofbusiness to include consumer and industrial disinfectant and cleaningsolutions in addition to its magnesium technology. Using itsgame-changing technology, Cover Technologies aims to be the mostenvironmentally friendly & sustainable producer of magnesium (Mg)metal, ultrapure Mg compounds, by-products and vertically integratedco-products. For further information or questions respecting theCompany kindly contact the Company via email at: info@MagOneProducts.com . Additional information can be found on the Company's website at www.MagOneProducts.com or byviewing the Company's filings at www.sedar.com .
Forward-LookingInformation
Information set forth in this press release may involveforward-looking statements, including statements relating to thesecurities of the Company trading on the CSE. Forward-lookingstatements are statements that relate to future, not past, events. Inthis context, forward-looking statements often address a company'sexpected future business and financial performance, and often containwords such as "anticipate", "believe","plan", "estimate", "expect", and"intend", statements that an action or event"may", "might", "could","should", or "will" be taken or occur, or othersimilar expressions. By their nature,forward-looking statements involve known and unknown risks,uncertainties and other factors which may cause our actual results,performance or achievements, or other future events, to be materiallydifferent from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such factorsinclude, among others, the following risks: risks associated withmarketing and sale of securities; the need for additional financing;reliance on key personnel; the potential for conflicts of interestamong certain officers or directors with certain other projects; andthe volatility of common share price and volume. In this case,disclosure about proposed the Name and Symbol Change and the ShareConsolidation are forward-looking statements, and there is a risk thatneither the Name and Symbol Change nor the Share Consolidation mayoccur or occur as planned, and there is a risk that such event(s)occurring or not occurring (whether at all or as planned) may haveadverse unforeseen impact on the Company, its market for securities,and/or its future business prospects (which include fundraising andoperational matters). Forward-looking statements are made based onmanagement's beliefs, estimates and opinions on the date thatstatements are made and except as required by law, the Companyundertakes no obligation to update forward-looking statements if thesebeliefs, estimates and opinions or other circumstances should change.Investors are cautioned against attributing undue certainty toforward-looking statements. For furtherinformation on risk, investors are advised to see the Company'sMD&A and other disclosure filings with the CSE regulators whichare found at www.sedar.com.
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