DigiMax Completes Second Tranche of Private Placement Totaling $655,000
Issues Shares to Retire Debts of $141,250
TORONTO, ON / ACCESSWIRE / September 30, 3030 / DigiCrypts Blockchain Solutions Inc. o/a DIGIMAX GLOBAL SOLUTIONS (the "Company" or "DigiMax") (CSE:DIGI) is pleased to announce that, pursuant to its August 17, 2020 announcement of a proposed equity financing of units, it has closed today a second tranche of subscriptions in the aggregate amount of $655,000 for 13,100,000 units. The subscription price per unit was $0.05 and each unit consists of one common share of the Company and one common share purchase warrant, with each warrant exercisable at $0.05 per share for 24 months following closing. Including the first tranche announced on September 9, 2020, the Company has now raised $1,210,000 through the issuance of 24,200,000 units.
EMD Capital Corp., Hampton Securities Limited and Industrial Alliance Securities Inc. arranged for an aggregate of $405,000 of the second tranche and will be paid fees consisting of 8% ($32,400) in cash and 8% broker warrants exercisable for 648,000 common shares of the Company exercisable at $0.05 per share for 24 months following closing.
In addition, the Company has completed shares for debt transactions, pursuant to which it issued 2,825,000 common shares in satisfaction of $141,250 of indebtedness currently owed to five arm's length service providers.
Including the issuance of shares detailed in this news release, there are currently 140,701,367 common shares of the Company issued and outstanding. DigiMax intends to close a smaller additional tranche of investment within the next 15 days to complete the investment first announced on August 17, 2020.
All of the foregoing securities issued are subject to a four-month hold period.
DigiMax also announces that it has issued incentive stock options exercisable for up to 2,500,000 common shares at $0.06 per share with a two-year term.
DigiMax is based in Toronto and is the first company in the Digital Security space to be both publicly listed (listed on the Canadian Securities Exchange-symbol: DIGI) and own a registered Dealer. Canada, DigiMax Capital Corp is an 'Exempt Market Dealer registered in Ontario.
The Company has a highly qualified management team with extensive experience in global financial and capital markets, combined with a rapidly expanding global presence through collaborative partnerships in the USA, Hong Kong, Indonesia, Malaysia, England, Singapore, Korea and Malta.
President & CEO
Cautionary Note Regarding Forward-looking Statements
NEITHER THE CANADIAN SECURITIES EXCHANGE, NOR THEIR REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
This press release contains "forward-looking statements". Forward-looking statements can be identified by words such as: anticipate, intend, plan, goal, seek, believe, project, estimate, expect, strategy, future, likely, may, should, will and similar references to future periods. Examples of forward-looking statements in this press release include, among others, statements we make regarding a second closing.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: shareholders approving the change of name to DigiMax, the adequacy of our cash flow and earnings, the availability of future financing and/or credit, and other conditions which may affect our ability to expand the App Platform described herein, the level of demand and financial performance of the cryptocurrency industry, developments and changes in laws and regulations, including increased regulation of the cryptocurrency industry through legislative action and revised rules and standards applied by the Canadian Securities Administrators, Ontario Securities Commission, and/or other similar regulatory bodies in other jurisdictions, disruptions to our technology network including computer systems, software and cloud data, or other disruptions of our operating systems, structures or equipment, as well as those risk factors discussed or referred to in disclosure documents filed by the Company with the securities regulatory authorities in certain provinces of Canada and available at www.sedar.com.
Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
SOURCE: DigiMax Global Solutions