TORONTO, ONTARIO – CardioComm Solutions, Inc. (TSX VENTURE:EKG) (“CardioComm Solutions” or the “Company”) today announced that it has closed its previously announced equity financing for gross proceeds of $76,000. The equity financing was conducted to allow parties who were not able to participate in the Company’s December 2016 private placement to invest in the Company. The proceeds from the financing will be used for general operations, regulatory submissions and working capital.
Under the financing, the Company issued 1,520,000 units at a price of $0.05 per unit. Each unit is comprised of one common share and one common share purchase warrant,
with each warrant exercisable for an additional Share at $0.075 for two years. The securities issued under the financing are subject to a four month hold period.
Etienne Grima, Chief Executive Officer of the Company, has privately sold 1,100,000 shares and has used the revenue from the sales to purchase 1,100,000 units under the
financing. The issuance of units to Mr. Grima is considered to be a related party transaction subject to TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special Transactions. The Company intends to rely on exemptions from the formal valuation and minority shareholder approval
requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that the value of the units issued to Mr. Grima does not exceed 25% of
the fair market value of the Company’s market capitalization.
