Halifax, Nova Scotia--(Newsfile Corp. - September 28, 2018) - Sona Nanotech Inc. (TSXV: SPT) ("Sona" or the "Company") further to the Company's press releases dated September 18, 2017 and March 26, 2018, Sona is pleased to announce that it has completed the amalgamation of its predecessor companies, Stockport Exploration Inc. and Sona Nanotech Ltd. to form "Sona Nanotech Inc." as a federally amalgamated corporation, as more particularly described below under the heading, "The Amalgamation".
Sona has reduced the pricing of the previously private placement of common shares of the Company from $0.40 per share to $0.25 per share. The Company has now completed this private placement of its common shares at $0.25 per share to raise gross proceeds of $2,000,000, by the issuance of 8,000,000 common shares (the "Offering"). In connection with the Offering, the Company has paid $150,000 in finder's fees and issued finder's share purchase warrants to Numus Capital Corp., a private company controlled by a director and consultant to Sona, for the right to purchase up to 600,000 common shares at an exercise price of $0.25 per share until September 27, 2020. The net proceeds from the Offering will be used by Sona to fund its business development and for general working capital.
Overview of Sona
Sona is a nano technology life sciences firm that has developed two proprietary methods for the manufacture of rod shaped gold nanoparticles. The principal business carried out and intended to be continued by Sona is the research and development of its proprietary technology for use in multiplex diagonostic testing platforms that will improve performance over existing tests in the market.
Sona's gold nanorod particles are CTAB (cetyltrimethylammonium) free, eliminating the toxicity risks associated with the use of other gold nanorod technologies in medical applications. It is expected that Sona's gold nano technologies may be adapted for use in applications, as a safe and effective delivery system for multiple medical treatments, pending the approval of various regulatory boards including Health Canada and the FDA.
Pursuant to the terms of the Amalgamation, every four (4) common shares of Stockport were exchanged for one (1) common share of Sona (the "Sona Shares"); and every 1.5802 common shares of Sona Nanotech Ltd. were exchanged for one (1) Sona Share. The amalgamation was completed on August 8, 2018.
The Company voluntarily delisted its common shares from the TSX Venture Exchange on August 7, 2018, and proposes to file an application for listing its common shares on the Canadian Securities Exchange ("CSE"). The Company received conditional approval for the CSE listing on July 27, 2018, and listing on the CSE is subject to the Company fulfilling all listing requirements.
For More Information
For more information about Sona, please contact:
President and Chief Executive Officer
Telephone: (902) 442-0653
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company's current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release includes information relating to the use of proceeds from the Offering, and the implementation of Sona's business plan. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the marketing and sale of securities, the need for additional financing, reliance on key personnel, the potential for conflicts of interest among certain officers or directors, and the volatility of the Company's common share price and volume. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
There are a number of important factors that could cause the Company's actual results to differ materially from those indicated or implied by forward-looking statements and information. Such factors include, among others, risks related to Sona's proposed business, such as failure of the business strategy and government regulation; risks related to Sona's operations, such as additional financing requirements and access to capital, reliance on key and qualified personnel, insurance, competition, intellectual property and reliable supply chains; risks related to Sona and its business generally, such as infringement of intellectual property rights and conflicts of interest. The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. While the Company may elect to, it does not undertake to update this information at any particular time.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
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