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CALGARY, AB / ACCESSWIRE / June 2, 2020 / Sparta Capital Ltd. (TSXV:SAY) (the “Corporation“, the “Company“, “Sparta Group“ or “Sparta“) is pleased to announce that it has closed the non-brokered private placement (the “Offering“) previously announced on May 27, 2020 and is also providing a brief market update as the Corporation moves into the summer months.
The Corporation has received final approval from the TSX Venture Exchange to complete the Offering and as a result the Corporation will be issuing 10,000,000 units of the Corporation (“Units“) at a price of $0.025 per Unit for gross proceeds to the Corporation of $250,000. Each Unit is comprised of one common share (“Common Share“) and two-halves of one Common Share purchase warrants of the Corporation, with one-half of one Common Share purchase warrant priced at $0.05 per Common Share (“5 Cent Half Warrant“) and one-half of one Common Share purchase warrant priced at $0.10 per Common Share (“10 Cent Half Warrant“), thus representing $0.05 per common share on a fully diluted basis. For the purposes of the Offering for Units a reference to a “Warrant” refers to both: (a) two 5 Cent Half Warrants, and (b) two 10 Cent Half Warrants. Each Warrant will entitle the holder thereof to acquire an additional Common Share at a price of $0.05 or $0.10, as applicable, for up to twenty-four (24) months following closing of the Offering. The Corporation has not paid any finders’ fees in cash or securities of the Corporation in connection with the Offering.
As jurisdictions around the world work on plans to re-stimulate the economy post COVID-19, for the first time, many environmentalists and business analysts are on the same page. This, after experiencing how dramatically the environment improved following the onset of the shutdown, suggesting this may be an opportunity to pursue a “green recovery”.
Sparta Group is ready to be part of such a recovery since the Corporation was well positioned going into the shutdown. Sparta has been able to keep operating during the pandemic with a strong team that was already familiar with virtual business practices, not just work that relies on face-to-face transactions. While it hasn’t been business as usual, there has been a lot going on. Sparta was not forced to completely shut down during the pandemic and the group has worked very hard to keep everyone gainfully employed throughout the ordeal. The fact is, staff and management are really pleased with what they have accomplished over the last couple of months, despite the challenges of COVID-19.
Standing up to the pandemic – Sparta has always put a strong emphasis on safety and security, this means the health and well-being of staff and clients comes first. For example, at the Re-ECO Tech division they have been able to keep the e-waste recycling and upcycling work going, following mandated social distancing guidelines and ensuring that employees are always provided with the necessary Personal Protective Equipment (“PPE”), including safety masks. In fact, not only was the division able to maintain supply lines to keep employees protected, they were also able to pivot business somewhat to provide others who were in desperate need as they couldn’t find suitable masks anywhere.
Landing the big guys – Re-ECO Tech serves a wide market range – from electronic manufacturers and household appliance makers, to front-line services, the retail sector, as well as food and beverage companies. Throughout the pandemic the Corporation continued negotiations with a number of very significant new and existing accounts. While they are unable to disclose specifics about clients due strict security and confidentiality policies (one of the reason’s clients choose ReECO Tech), the company is confident that they should be able to add additional world-renowned brands to the client roster. These brands have multiple product lines and pump out literally millions of tech devices every day for worldwide use.
Moving forward with net zero housing – Sparta’s net zero housing development is still moving forward as planned. Over the last few months, the Corporation has been working out the details of a partnership that will bring the concept of a net zero community in eastern Ontario closer to reality. Specifics should be unveiled soon.
Closing the deals – Account executives at Illumineris, Sparta’s energy optimization entity, are currently working to close a number of agreements that will mean workers associated with this division can expect to be very busy post COVID-19. As the agreements roll out, the world will be informed through all Sparta’s communications channels.
Driving ahead with TruckSuite™ – In March, the Corporation announced that Sparta signed a market development MOU with TruckSuite™ LLC to form TruckSuite Canada™ Ltd. This deal has been moving forward very quickly, as management see great opportunity within this division as truck drivers truly demonstrated how, as front-line workers, they are so important to keep our citizens supplied with essential goods and services. They need support on the road now more than ever and the need is not expected to change after the pandemic. In fact, like with ReECO Tech, TruckSuite Canada has found new opportunities and thus have pivoted as a result of the pandemic; adding a growing suite of much needed truck-related PPE and related consumable services to compliment the present TruckSuite offering. In addition, they have engineered a number of unique financial products designed to help mitigate downtime, thus keeping the trucks on the road, while providing some exciting new investment opportunities in the process. As more information becomes available, the investment community and the market-at-large and will be informed through all Sparta’s communications channels.
Sparta Group is a company that owns or holds a controlling interest in a network of independent businesses that supply energy saving technologies designed to reduce energy inefficiencies, achieve reduced emissions, and increase operating efficiencies in various industries. Sparta’s network of independent businesses provides a wide range of specialized energy capturing, converting, optimizing, and related services to the commercial sector. Sparta provides capital, technical and engineering expertise, legal support, financial and accounting knowledge, strategic planning and other shared services to its independent businesses.
Sparta is a publicly traded company listed on the TSX Venture Exchange Inc. under the symbol “SAY” (TSX.V: SAY). Additional information is available at www.spartagroup.ca or on SEDAR at www.sedar.com.
For further information please contact:
John O’Bireck, President
Telephone: (905) 751-8004
This news release contains “forward-looking information” within the meaning of applicable securities laws. When used in this news 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. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, readers are cautioned to not place undue reliance on forward-looking information because the Corporation can give no assurance that they will prove to be correct. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date of publication of this news release and the Corporation undertakes no obligation to update such forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Furthermore, the Corporation undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Corporation. In particular, this news release contains forward-looking statements relating to, among other things, statements pertaining to the “Offering” and actual results could differ materially from those currently anticipated due to a number of factors and risks.
These include, but are not limited to, the failure to obtain necessary regulatory approvals, necessary financing and risks associated with the environmental technologies industry in general. All forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Sparta Capital Ltd.
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