SATO Technologies raises $867,382 in first tranche of $1.4M private placement

SATO Technologies Corp. (TSXV: SATO) (OTCQB: CCPUF) completed the first tranche of its private placement offering, raising $867,382 and upsizing the total offering to $1.4 million.

The company issued 8,272,655 units at $0.06375 each for proceeds of $527,382, and 340 convertible debenture units at $1,000 each for proceeds of $340,000. Each unit consists of one common share and one warrant, while each debenture unit includes a $1,000 convertible debenture and detachable warrants.

The warrants allow holders to purchase common shares at $0.085 during the first year and $0.10 thereafter until March 16, 2031. The convertible debentures carry 15% annual interest and mature March 16, 2029, convertible at $0.085 per share in the first year and $0.10 thereafter.

Company management and board members participated in the first tranche, including CEO Romain Nouzareth, who acquired 340 convertible debenture units, and director Mathieu Nouzareth, who purchased 5,816,184 units. Following the transaction, Mathieu Nouzareth holds 17.23% of outstanding shares, while Romain Nouzareth owns 13.50%.

"This is the most aligned capital raise I've been part of," said Romain Nouzareth. "When your co-founder, your CFO, your board, and your local operating partner all invest alongside you, it says more than any pitch deck."

SATO will use proceeds for working capital and general corporate purposes. The company also settled $34,105 in debt by issuing 534,980 units to a creditor at the same terms as the private placement.

The offering remains subject to regulatory approvals, including final acceptance from the TSX Venture Exchange. Securities issued carry a four-month hold period under Canadian securities laws.

SATO operates a 20 MW data center in Quebec and is transitioning from cryptocurrency mining to AI compute infrastructure.

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