Zonetail Inc (OTCMKTS:ZTLLF) on April 19, 2023, announced that it is intending to give an offer for sale on a non-brokered private placement basis. This will consist of shares of the firm at a price of $0.02 per share for aggregate gross proceeds of about $1,500,000.
The Offering will be subject to receipt of all the other approvals, including the Toronto Venture Exchange. Furthermore, it would also need to satisfy other customary closing conditions. It is estimated that the company will issue 75,000,000 Shares if maximum proceeds are raised.
The firm may pay finder’s fees of about 6% of the gross proceeds in cash and issue 6% non-transferable warrants to a number of registered dealers or finders. Each Finder Warrant will entitle holders to purchase one Zonetail Share at a price of $0.05 per share for about thirty-six months from the closing date of the offering.
Proceeds from the share sale will be for completing four major integration projects, which are currently ongoing as well as general working capital purposes. It is estimated that about 13% will be utilized for non-Arm’s length salaries while 8% will be for investor relations and 21% for arm’s length salaries. A part of the Offering may be provided to investors relying on the “accredited investor” or other exemptions available to Zonetail.