Zonetail Inc. announced a non-brokered private placement of 12,500,000 units at a price of CAD 0.04 per unit for maximum gross proceeds of CAD 500,000 on December 15, 2022. Each unit will consist of one common share and one whole common share purchase warrant. Each warrant will entitle the holder to purchase additional common share at an exercise price of CAD 0.06 for a period of thirty-six month from the date of closing.

The transaction is subject to the receipt of all necessary approvals, including the approval of the Toronto Venture Exchange, as well as the satisfaction of other customary closing conditions. In connection with the transaction, the company may pay findersÆ fees equal to 6% of the gross proceeds in cash and issue 6% non-transferable warrants to various registered dealers or findersÆ, representing up to 6% of the units sold through such registered dealers or finders in the transaction. Each finder warrant will entitle the holder thereof to purchase one common share at a price of CAD 0.06 per share for a period of thirty-six months from the closing date of the offering with the same expiry provision and the warrants.

All the securities issuable in connection with the transaction will be subject to a hold period expiring four months and one day after the date of issuance of the securities. It is anticipated that the first closing of the transaction will occur on or about December 23, 2022, with a final closing no later than January 27, 2023. The company will update shareholders when the transaction has been completed and TSXV final approval has been received.