Calgary, Alberta – October 11, 2016 – Acceleware Ltd. (TSXV:AXE) (the “Corporation”) announces that, on October 7, 2016, the Corporation closed the non-brokered private placement of units (the “Units”) that it previously announced on September 22, 2016 (the “Private Placement”). Each Unit consists of one common share of the Corporation (a “Common Share”) and one-half of one common share purchase warrant of the Corporation (a “Warrant”). Each whole Warrant entitles the holder of the Warrant to acquire one common share of the Corporation, at an exercise price of $0.22, for a period ending on October 7, 2018. Pursuant to the Private Placement, the Corporation distributed a total of 18,181,818 Units, at a price of $0.11 per Unit, for total proceeds of $2,000,000.
The net proceeds of the Private Placement will be used to to develop and field test Acceleware’s innovative radio frequency RF XL heavy oil and oil sands extraction technology, and for general Corporate purposes. The Common Shares issued in connection with the Private Placement and any common shares of the Corporation issued upon exercise of the Warrants will be subject to a four-month hold period which will expire on February 8, 2017 in accordance with applicable securities legislation.
Insiders of the Corporation purchased a total of 3,018,954 Units under the Private Placement, which is considered a related party transaction within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Corporation relied on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(a), respectively, of MI 61-101 in respect of such insider participation. No new insiders and no control persons were created in connection with the Private Placement.
Acceleware (www.acceleware.com) develops high performance seismic imaging and modeling software products and provides innovative technology for radio frequency (RF) heating, an emerging thermal enhanced oil recovery method. As experts in programming for multi-core CPUs and massively parallel GPUs, Acceleware’s professional services team specializes in accelerating computationally intense applications for clients to speed up product design, analyze data and help make better business decisions. Acceleware’s products and services are used by some of the world’s largest energy and engineering companies.
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