Sona Nanotech Inc. announced a brokered private placement to issue 3,750,000 units at an issue price of CAD 0.20 for the gross proceeds of CAD 750,000 on October 18, 2023. Each Unit will consist of one common share and one-half of a common share purchase warrant. Each whole Warrant will be exercisable to purchase one additional Common Share of at a price of CAD 0.30 per share for a period of 24 months from the closing date of the Financing.

Insiders and certain other existing shareholders of may also subscribe for Units under the Financing. As compensation for its services, the Agent will receive cash compensation equal to 7.5% of the gross proceeds of the Financing. The Agent will also receive non-transferable share purchase warrants which will entitle the Agent to acquire such number of common shares as is equal to 7.5% of the number of Units placed by the Agent.

The Broker Warrants will be exercisable at a price of CAD 0.20 per share any time for a period of 24 months from the Closing Date. Completion of the Financing is subject to the satisfaction of certain conditions, and all securities issued pursuant to the Financing will be subject to a hold-period of four months and a day commencing from the Closing Date.