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Star Navigation Announces Completion of Private Placements

Newsfile Corp.
·4 mins read

Brampton, Ontario--(Newsfile Corp. - October 13, 2020) - Star Navigation Systems Group Ltd. (CSE: SNA) (CSE: SNA.CN) ("Star" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement of 41,634,000 units in the capital of the Company ("Units") at a purchase price of $0.025 per Unit for gross proceeds of $1,040,850. Each Unit consists of one common share in the capital of the Company and one warrant. Each of the warrants acquired entitles the holder to purchase one (1) additional common share of the Company at five ($0.05) cents per warrant exercised. The warrants are exercisable during the two (2) year period from the date of issue.

All securities issued in the offering and any shares issued upon exercise of warrants are subject to a four month statutory hold period from the date of issuance. In addition, the Company's securities, including securities issued in the offering and any shares issued upon exercise of warrants remain subject to a cease trade order issued by the Ontario Securities Commission (the "Principal Regulator") dated November 1, 2019.The net proceeds of the private placement will be used for working capital for further development of the operations, sales and marketing efforts surrounding the Star-A.D.S.® system.

The Company has agreed to pay finder's fees in the amount of Ten (10%) percent of the gross proceeds in Units. The price was reserved with the CSE.

The Company has also successfully converted $1,156,760 of outstanding debt (the "Debt Conversion") held by certain shareholders into 57,838,000 units (the "Debt Conversion Units"). Each Debt Conversion Unit was issued at two ($0.02) per Debt Conversion Unit and consists of one (1) common share of the Company and one (1) warrant. Each of the warrants acquired entitles the holder to purchase one (1) additional common share of the Company at five ($0.05) cents per warrant exercised. The warrants are exercisable during the two (2) year period from the date of issue.

All securities issued in the Offering and any shares issued upon exercise of warrants are subject to a four month statutory hold period from the date of issuance. In addition, the Company's securities, including securities issued in the Offering and any shares issued upon exercise of warrants remain subject to a failure-to-file cease trade order issued by the Ontario Securities Commission (the Principal Regulator) dated November 1, 2019.The net proceeds of the private placement will be used for working capital purposes.

Amir Bhatti, CEO of Star Navigation states that "Our top priority now is to secure sales and the Company will be operating on a very strict budget going forward to allow us to aggressively push the sales and marketing efforts for the Star-A.D.S.® system."

Anoop Brar, COO of Star Navigation states that "Raising over a million dollars during the Covid-19 pandemic and during these uncertain times in the Company's history indicates that there is strong investor confidence in the technology, the new management and the future success of Star Navigation."

Certain statements contained in this Release constitute forward-looking statements. When used in this document, the words "may", "would", "could", "will", "expected", "intend" and similar expressions, as they relate to Star or its management or board are intended to identify forward-looking statements. Such statements reflect Star's current views with respect to future events and are subject to certain risks, uncertainties and assumptions.

The risks posed by the COVID-19 pandemic are real and substantial but cannot be defined or measured in any meaningful way at this time. Mr. Viraf Kapadia's outstanding litigation and the process initiated by Mr. Kapadia for his personal interests under the Bankruptcy and Insolvency Act are risks to Star.

Many other factors could cause Star's actual performance or achievements to vary from those described herein. Should one or more of these factors or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Star does not assume any obligation to update these forward-looking statements, except as required by law.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of the content of this release.

Please visit www.star-navigation.com or contact

Mr. Amir Bhatti, CEO at 1-416-252-2889 #230

amir.bhatti@star-navigation.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/65843