UGE Announces $1,800,000 Bought Deal Private Placement

 

TORNONTO, ONTARIO- (June 6, 2017)  

UGE International Ltd. (TSX-V: UGE) (the "Company" or "UGE"), a leader in renewable energy solutions for the commercial and industrial sector, is pleased to announce that it has entered into an agreement with a syndicate of Underwriters led by Canaccord Genuity Corp. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase 3,000,000 units (the "Units") from the Company at a price of $0.60 per Unit on a bought deal private placement basis for aggregate gross proceeds of $1,800,000 (the "Offering").

Each Unit will consist of one common share of UGE (a "Common Share") and one-half of one warrant to purchase Common Shares (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one Common Share of the Company at a price of $0.80 for a period of 24 months following the closing of the Offering.

The Company has also granted the Underwriters an option to purchase up to an additional 450,000 Units, for aggregate gross proceeds of up to an additional $270,000 to cover over-allotments, exercisable in whole or in part at any time until 48 hours prior to the Closing Date (as defined below). The gross proceeds from the sale of the Units will be used for expansion plans concerning the Company's business and for general corporate and working capital purposes.

The Common Shares and Warrants issuable pursuant to the Offering will be subject to a statutory hold period lasting four months and one day following the Closing Date (as defined below).

This news release does not constitute an offer to sell or a solicitation of an offer to sell 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 U.S. Persons (as defined under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The closing of the Offering is expected to occur on or about June 27, 2017 (the "Closing Date"). The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange.