Atlas Cloud Enterprises Inc. (the “Company”, “Atlas Cloud”)(CSE: AKE) is pleased to announce that, further to news release dated May 12, 2016, the Company has completed a first tranche closing of its private placement through the issuance of $1,002,000 of convertible debentures (“Debentures”). The Debentures (i) bear interest at a rate of 9% per annum, calculated and payable semi-annually, (ii) mature 36 months from the date of issuance (the “Term”), and (iii) are convertible during the Term, at the option of the holder, into common shares at a conversion price of $0.25 per share.
Finder’s fees of (i) $58,800 and (ii) 392,000 finder’s warrants were paid to one finder in connection with this tranche closing.
The securities issued in relation to the first tranche closing of the private placement are subject to a regulatory four-month hold period expiring October 30, 2016.
Proceeds of the private placement will be used for purchase and installation of 30 high density racks, fire suppression system, a security system, and a redundant cooling condenser at its Vancouver location.
The Company will continue to raise the balance of the Debenture offering in the next few weeks.
On behalf of the Board,
“Fred W. Stearman”
Fred W. Stearman
Chief Executive Officer
For further information, contact the Company’s CEO, Fred Stearman at (778) 871-0357 or at [email protected].
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.