ST. JOHN’S, NEWFOUNDLAND AND LABRADOR–(Marketwired – Aug. 15, 2016) – Kraken Sonar Inc. (TSX VENTURE:PNG) (“Kraken” or the “Company”) is pleased to announce that effective August 12, 2016 it has closed a non-brokered private placement offering (the “Offering”) comprised of 7,159,534 units (the “Units”) at a purchase price of $0.15 per Unit for aggregate gross proceeds of $1,073,930. Each Unit consisted of one common share and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”), with each Warrant exercisable to acquire one common share of Kraken at $0.30 for a period of 24 months from the date of issuance. In connection with the Offering, the Company paid a cash finder’s fees of $18,025. All proceeds raised from the sale of the Units will be used by Kraken for general corporate and working capital purposes.
Kraken is also pleased to announce that it has entered into a securities for debt settlement agreement with a certain arms’ length creditor (the “Settlement”). Upon approval of requisite filings, Kraken will issue 233,333 common shares, at a deemed price of $0.15 per common share, as well as issue 116,666 Warrants, to satisfy a debt of $35,000. Each Warrant will be exercisable to acquire one common share of Kraken at $0.30 for a period of 24 months from the date of issuance.
The securities issued pursuant to the Offering and the Settlement will all be subject to a four month statutory hold period commencing from the date of issuance. The Offering and Settlement are subject to TSX Venture Exchange acceptance of requisite regulatory filings.
“We are pleased with the very strong interest from investors in Kraken’s future as indicated by the oversubscription of the private placement,” said Karl Kenny, President and CEO of Kraken. “The Company now has the means to build upon the contracts in our pipeline, including the delivery of our first KATFISH system. This financing will also allow us to consider additional opportunities in the Unmanned Maritime Systems industry.”
About Kraken Sonar Inc.
Kraken Sonar Inc. is an industrial technology company, founded in 2012, that is dedicated to the production and sale of Synthetic Aperture Sonar, sensors and underwater robotics. The Company’s products are sold to leading defence contractors, commercial survey companies and research institutions for producing real-time, ultra-high resolution imagery and bathymetry of the seabed. For more information, please visitwww.krakensonar.com.
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.