Nstein Technologies Inc. ("Nstein"), has announced the conclusion of its previously disclosed private placement of CAD$10M with J.L. Albright IV Venture Fund L.P. ("J.L. Albright"), a Canadian venture capital company, and Solidarity Fund QFL (the "Fund"). The Company also announced its capital stock consolidation on a 10 to 1 basis, as described below. An aggregate of 11,764,706 common shares were issued in the transaction at a subscription price of $0.85 per share. Half of the issuance was allocated to the Fund, an insider, representing approximately 5.88 million common shares.
The Fund now holds 10.74 million common shares (post consolidation), representing 34.6% of the issued and outstanding common shares of the Company, or 27.6% on a fully diluted basis. The transaction does not include any issuance of share purchase warrants. Desjardins Securities was the agent for this transaction, receiving a $400,000 commission fee, as well as 352,941 warrants valid for a 5-year period at a strike price of $0.85 per warrant. The common shares of J.L. Albright, the Fund, and Desjardins Securities will be subject to a 4-month hold period.