VANCOUVER, BC / ACCESSWIRE / August 13, 2019 / ZoomAway Travel Inc. (TSXV:ZMA) (the “Company”) www.zoomaway.com, an innovator in the hospitality technology sector, is pleased to announce that it has received expressions of interest from qualified investors for the proposed private placement of Units announced on July 30, 2019. The Company originally planned to complete such private placement on an exempt basis for five million (5,000,000) Units. Based on the high level of interest received, the Company is increasing the size of the offering to six million (6,000,000) Units. As previously announced, each Unit will be comprised of one common voting share and one share purchase warrant. The Units are to be priced at CAD $0.08 and each warrant will be exercisable into one common voting share at a price of CAD $0.10 until the date that is 12 months following the closing of the offering. Closing may occur in one or more tranches with the first closing now expected to occur on or about August 16, 2019.
It is not expected that any of the Directors or Officers of the Company, or their associates, will be purchasing Units, other than Mr. Mark Riden, a member of the Company’s Board of Directors, who has expressed an interest in purchasing a small portion of this Offering. Mr. Riden is expected to purchase approximately 200,000 Units, which is 3.3% of the Offering, and would result in his owning 0.7% of the issued and outstanding shares of the Company post-offering (1.0% fully diluted).
No agent, broker or finder will be paid any fees in relation to the offering. This proposed private placement is subject to the approval of the TSX Venture Exchange.
After paying legal, accounting and administrative fees in relation to the private placement, the Company expects to receive net proceeds of CAD $425,000 which will be used for further development and marketing of it’s ZoomedOUT project, further exploration of other complimentary mergers, acquisitions, partnerships, investor relations and continued working capital.
Sean Schaeffer, CEO of Zoomaway Travel Inc. reported, “I am happy with the response to our most recent announcements and the resulting market activity. I believe that we are right on track with our plans, and I am very pleased with the execution and results thus far. We will continue to use every tool at our disposal to keep adding pieces to achieve even better results.”
All securities issued or issuable in respect of the Units are or will be subject to a statutory hold period expiring on the date that is four months and one day after the distribution date. None of the securities issued or issuable in connection with the Notes will be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.