SATO Technologies closes $1.4 million private placement

SATO Technologies Corp. (TSXV: SATO) (OTCQB: CCPUF) completed the second and final tranche of its non-brokered private placement, raising total gross proceeds of $1,375,173.82 across both tranches.

The second tranche generated approximately $507,792 through the issuance of 7,965,370 units at $0.06375 per unit. Each unit consists of one common share and one warrant, with warrants exercisable at $0.085 per share during the first year and $0.10 per share thereafter until March 23, 2031.

The offering included participation from Zac Smith and Jacob Smith, co-founders of Packet, which was acquired by Equinix for $335 million in 2020. The Smith brothers now operate Datum, described as an open network cloud for AI. Company insiders subscribed for 476,547 units, generating approximately $30,380 in proceeds.

SATO issued finder's warrants equal to 6% of units sold by eligible persons, exercisable at $0.10 per share until March 23, 2031. No cash finder's fees were paid.

"We are pleased to close this financing, which represents another step in expanding and strengthening our digital infrastructure platform," said Romain Nouzareth, CEO of SATO Technologies. "As we advance our development of AI-optimized compute capabilities in Québec, bringing on Zac and Jacob adds immediate depth to our execution."

The company plans to use proceeds for working capital and general corporate purposes. SATO operates a 20 MW data center in Québec powered by renewable hydroelectricity and is transitioning from cryptocurrency mining to AI compute operations.

The offering remains subject to final acceptance by the TSX Venture Exchange. Securities are subject to a four-month hold period in Canada and resale restrictions in the United States.

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