Syntholene Energy closes $3.75 million private placement

Syntholene Energy Corp. (TSXV: ESAF) completed a non-brokered private placement raising $3.75 million in gross proceeds, according to a company statement.

The company issued 8.33 million units at $0.45 per unit. Each unit includes one common share and one warrant exercisable at $0.63 for two years. The warrants contain an acceleration provision allowing early expiry if shares trade at or above $0.90 for ten consecutive days.

Syntholene plans to use proceeds for procurement and assembly of components for a demonstration facility in Iceland, along with corporate marketing and working capital.

Several company insiders participated in the financing. Director and officer John Kutsch acquired 1.46 million units for $655,000, Chief Financial Officer Grant Tanaka purchased 111,111 units for $50,000, and director Anna Pagliaro bought 22,222 units for $10,000.

Following the transaction, Kutsch owns approximately 22% of outstanding shares on a non-diluted basis. The company paid commissions totaling $120,024 to Canaccord Genuity Corp. and Haywood Securities Inc., along with issuing broker warrants.

All securities are subject to a four-month hold period under securities laws. The transaction qualified as a related party transaction but was exempt from formal valuation and minority shareholder approval requirements.

Syntholene develops synthetic fuel production technology and has secured 20MW of energy for its demonstration facility. The company trades on the TSX Venture Exchange, Frankfurt Stock Exchange, and OTCQB markets.

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