Aluula Composites Inc. announced that it has entered into an agreement for a private placement on bought deal to issue 20,000,000 units at an issue price of CAD 0.15 per unit for gross proceeds of CAD 3,000,000 on June 19, 2023. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional common share of the company at a price of CAD 0.25 per share for a period of 24 months from the closing of the transaction.

The company has also granted the underwriters an option to purchase up to an additional 10,000,000 units at the issue price, for total additional gross proceeds of up to CAD 1,500,000. The underwriter's option, if exercised, is expected to close concurrently with the closing of the transaction. Closing of the transaction is subject to the company entering into an underwriting agreement with underwriter, as well as customary closing conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange.

The transaction will be made by way of private placement pursuant to the applicable exemptions from the prospectus requirements. The securities issuable pursuant to the transaction will be subject to a four-month statutory hold period under Canadian securities laws.