Canadian Premium Sand Inc. Announces Increase to Previously Announced Equity Financing
Canadian Premium Sand Inc. Announces Increase to Previously Announced
Equity Financing
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF
AMERICA
CALGARY, Alberta, Aug. 10, 2022 -- Canadian Premium Sand Inc. (“CPS” or the “Company”) (TSXV: CPS) is pleased to
announce that due to strong demand it has agreed with Peters & Co. Limited and Fort Capital Partners (together, the
“Agents”) to increase the size of the previously announced best efforts private placement financing (the “Brokered Offering”).
CPS will now issue up to 28,500,000 units of the Company (each, a “ Unit”) at a price of $0.30 per Unit (the “Offering Price ”)
for gross proceeds to the Company of up to $8,550,000 pursuant to the Brokered Offering.
In conjunction with the Brokered Offering, the Corporation will complete, on a private placement basis, a non-brokered offering
of up to 3,600,000 Units at the Offering Price for gross proceeds of up to $1,080,000 to certain shareholders, officers,
directors, employees, and close associates of the Corporation (the “Non-Brokered Offering”).
In all other respects, the terms of the Brokered Offering and use of proceeds therefrom and from the Non-Brokered Offering will
remain as previously disclosed in the Company’s earlier July 27, 2022 press release.
The securities being offered under the Brokered Offering and Non-Brokered Offering will be issued pursuant to applicable
exemptions from the prospectus requirements under applicable securities laws and will be subject to a hold period that will
expire four months and one day from the date of issue.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”) or any state securities laws and accordingly may not be offered or sold within the United
States or to “U.S. persons”, as such term is defined in Regulation S promulgated under the U.S. Securities Act (“ U.S.
Persons”), except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities
requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an
offer to buy any of the Company’s securities to, or for the account of benefit of, persons in the United States or U.S. Persons.
About Canadian Premium Sand Inc.
The Company is developing manufacturing capacity for ultra high-clarity patterned solar glass through a Company-owned
facility to be located in Selkirk, Manitoba that utilizes the high-purity, low-iron silica sand from its wholly owned Wanipigow
quarry leases and renewable Manitoba hydroelectricity. The Company is a reporting issuer in Ontario, Alberta and British
Columbia. Its shares trade on the TSXV under the symbol "CPS".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION:
Canadian Premium Sand Inc.
Glenn Leroux Cam Deller
President and Chief Executive Officer Chief Financial Officer
[email protected] [email protected]
Investor Relations
587.355.3714
www.cpsglass.com
The issuances of Units to insiders pursuant to the Brokered Offering and Non-Brokered Offering will also be considered related
party transactions within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions (“ MI 61-101 ”). CPS intends to rely on exemptions from the formal valuation and minority
approval requirements in sections 5.5(c) and 5.7(b) of MI 61-101 in respect of such insider participation on the basis that
neither the fair market value of the securities to be distributed in the Brokered Offering and Non-Brokered Offering nor the
consideration to be received for those securities, in so far as the Brokered Offering and Non-Brokered Offering involves the
Insiders, exceeds $2,500,000. Further details will be provided in the Company’s material change report to be filed on SEDAR.
The Company expects to file a material change report in respect of the related party transaction less than 21 days prior to the
closing of the Brokered Offering and Non-Brokered Offering, which the Company deems reasonable in the circumstances so
as to be able to avail itself of the proceeds.
Forward Looking Information
Certain statements contained in this press release constitute forward-looking statements relating to, without limitation,
expectations, intentions, plans and beliefs, including information as to the future events, results of operations and the
Company’s future performance (both operational and financial) and business prospects. In certain cases, forward-looking
statements can be identified by the use of words such as “expects”, “estimates”, “forecasts”, “intends”, “anticipates”,
“believes”, “plans”, “seeks”, “projects” or variations of such words and phrases, or state that certain actions, events or results
“may” or “will” be taken, occur or be achieved. Such forward-looking statements reflect the Company's beliefs, estimates and
opinions regarding its future growth, results of operations, future performance (both operational and financial), and business
prospects and opportunities at the time such statements are made, and the Company undertakes no obligation to update
forward-looking statements if these beliefs, estimates and opinions or circumstances should change. Forward-looking
statements are necessarily based upon a number of estimates and assumptions made by the Company that are inherently
subject to significant business, economic, competitive, political and social uncertainties and contingencies. Forward-looking
statements are not guarantees of future performance. In particular, this press release contains forward-looking statements
pertaining, but not limited, to: the size of the Brokered Offering and Non-Brokered Offering; use of net proceeds under the
Brokered Offering and Non-Brokered Offering; the expected participation of insiders in the Brokered Offering and Non-
Brokered Offering; the anticipated closing and closing time of the Brokered Offering and Non-Brokered Offering; the receipt of
TSXV approval for the Brokered Offering and Non-Brokered Offering; key milestones relating to the use of net proceeds under
the Brokered Offering and Non-Brokered Offering; the timing for the commencement of construction for the facility; future
development and construction plans; industry conditions pertaining to the solar glass manufacturing industry; the ability of and
manner by which the Company expects to meet its capital needs; and the Company's objectives, strategies and competitive
strengths. By their nature, forward-looking statements involve numerous current assumptions, known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ
materially from those anticipated by the Company and described in the forward-looking statements.
A number of factors, risks and uncertainties could cause results to differ materially from those anticipated and described
herein including, among others: the effects of competition and pricing pressures; effects of fluctuations in the price of glass
products and raw materials input costs; risks related to indebtedness and liquidity, including the Company's capital
requirements; risks related to interest rate fluctuations and foreign exchange rate fluctuations; changes in general economic,
financial, market and business conditions in the markets in which the Company operates; the Company's ability to obtain,
maintain and renew required permits, licenses and approvals from regulatory authorities; the stringent requirements of and
potential changes to applicable legislation, regulations and standards; the ability of the Company to comply with unexpected
costs of government regulations; liabilities resulting from the Company's operations; the results of litigation or regulatory
proceedings that may be brought against the Company; uninsured and underinsured losses; risks related to the transportation
of the Company's products, including potential rail line interruptions or a reduction in rail car availability; the geographic and
customer concentration of the Company; the ability of the Company to retain and attract qualified management and staff in the
markets in which the Company operates; labor disputes and work stoppages and risks related to employee health and safety;
general risks associated with the glass manufacturing and sand quarry industries, loss of markets, consumer and business
spending and borrowing trends; limited, unfavorable, or a lack of access to capital markets; uncertainties inherent in
estimating quantities of products; processing problems; the use and suitability of the Company's accounting estimates and
judgments; and the other risk factors outlined in CPS’s most recent Management’s Discussion and Analysis which is available
on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in its forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will materialize or prove to be accurate, as actual results and future events could differ materially
from those anticipated in such statements. The forward-looking statements contained in this press release are expressly
qualified by this cautionary statement. Readers should not place undue reliance on forward-looking statements. These
statements speak only as of the date of this press release. Except as may be required by law, the Company expressly
disclaims any intention or obligation to revise or update any forward-looking statements or information whether as a result of
new information, future events or otherwise. Any financial outlook and future-oriented financial information contained in this
press release regarding prospective financial performance, financial position, cash flows or EBITDA projections are based on
assumptions about future events, including economic conditions and proposed courses of action based on management’s
assessment of the relevant information that is currently available. Projected operational information contains forward-looking
information and is based on a number of material assumptions and factors, as are set out above. These projections may also
be considered to contain future oriented financial information or a financial outlook. The actual results of the Company's
operations for any period will likely vary from the amounts set forth in these projections and such variations may be material.
Actual results will vary from projected results. Readers are cautioned that any such financial outlook and future-oriented
financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The
forward-looking information and statements contained in this document speak only as of the date hereof and the Company
does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be
required pursuant to applicable laws
Currency
All references to “$” in this press release are to Canadian dollars, unless otherwise noted.