Cover Technologies (CSE:COVE) announces agreement for business combination and private placement

Cover Technologies (COVE) has signed an assignment agreement with 1346487 B.C. (NumberCo) and PlasCredUnder the agreement, the company will issue to NumberCo 12,000,000 post-consolidation units of the company at a deemed price of $0.10 per unitPrior to the closing of the transaction, the company plans to consolidate its outstanding shares on the basis of two pre-consolidation shares for every post-consolidation shareThe company has also announced a non-brokered private placement consisting of the issuance of up to 13,333,333 post-consolidation shares at a deemed price of $0.30 per post-consolidation share for gross aggregate proceeds of up to $4,000,000Cover Technologies Inc. opened trading at $0.185 per share

Cover Technologies (COVE) has signed an assignment agreement with 1346487 B.C. (NumberCo) and PlasCred.

Under the agreement, Cover Technologies agreed to enter into an assignment agreement of a securities exchange agreement dated August 2, 2022, among NumberCo and PlasCred Inc. and the shareholders of PlasCred.

In connection with the agreement, the company has also agreed, by way of novation and assumption agreement, to take assignment of the funds that NumberCo has advanced to Plascred.

These funds are expected to be $800,000 by the time of closing of the assignment and secured by a general security agreement over all the assets of PlasCred.

PlasCred is a private green technology company incorporated in Alberta whose patent-pending and proprietary process enables true plastic waste removal in a scalable, systematic and profitable way.

In consideration for the assignment, the company will issue to NumberCo 12,000,000 post-consolidation units of the company at a deemed price of $0.10 per unit.

Each unit will be made up of one post-consolidation common share in the capital of the company and one post-consolidation share purchase warrant exercisable for a period of two years at an exercise price of $0.25 per post-consolidation share.

The assignment will allow the company to acquire all of the outstanding securities of PlasCred from the security holders of PlasCred.

In connection with the completion of the transaction, the company will issue up to an aggregate of 35,000,000 shares at a deemed price of $0.10 per share on a pro-rata basis to the security holders of PlasCred.

Before the closing of the transaction, the company plans to consolidate its outstanding shares on the basis of two pre-consolidation shares for every post-consolidation share.

In addition to the assignment, the company has also announced a non-brokered private placement consisting of the issuance of up to 13,333,333 post-consolidation shares at a deemed price of $0.30 per post-consolidation share for gross aggregate proceeds of up to $4,000,000.

The company intends to use the proceeds from the financing for general working capital purposes as well as to help fund the closing of the transaction.

Cover Technologies Inc. is the development and commercialization of technologies for the processing and production of magnesium (Mg) metal, Mg-related compounds, by-products and co-products from already mined, above-ground serpentinite tailings.

Cover Technologies Inc. opened trading at $0.185 per share.

The post Cover Technologies (CSE:COVE) announces agreement for business combination and private placement appeared first on The Market Herald.

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