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Vancouver, British Columbia--(Newsfile Corp. - July 15, 2024) - Railtown AI Technologies Inc. (CSE: RAIL) (OTCQB: RLAIF) ("Railtown" or the "Company") is pleased to announce that the Company has closed its previously-disclosed non-brokered private placement (the "Offering") of units of the Company (each, a "Unit") at a price of US$0.21 per Unit for aggregate gross proceeds of US$1,470,000. Each of the 7,000,000 Units consists of one common share in the capital of the Company (each, a "Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"), with each Warrant entitling the holder thereof to acquire one additional Share at an exercise price of US$0.42 per Share for a period of 18 months.
All securities issued in connection with the Offering are subject to a standard hold period of four months and one day in Canada plus applicable resale restrictions in the United States.
In connection with the Offering, the Company paid aggregate cash commissions of US$109,162 to eligible arm's length finders (each, a "Finder") equal to 8% of the gross proceeds raised from purchasers introduced by such Finders, and issued an aggregate of 519,818 non-transferable common share purchase warrants (each, a "Finder's Warrant") to the same Finders, equal to 8% of the number of Units sold to purchasers introduced by such Finders. Each Finder's Warrant entitles the holder thereof to acquire one Share at an exercise price of US$0.21 per Share for a period of 18 months from the date of issuance.
As described in the Company's news release dated June 20, 2024, the Company expects to use the net proceeds of the Offering for general working capital purposes.
None of the securities referenced in this news release have been or will be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) or persons in the United States absent registration or an applicable exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Railtown AI Technologies
Railtown AI, a Microsoft Partner, is a cloud-based Application General Intelligence™ Platform for Software Developers and Teams that practice Agile Project Management. We purposely built our Application General Intelligence™ Platform to help Software Developers and Agile practitioners save time on redundant tasks, improve productivity, drive down costs, and accelerate developer velocity. Railtown's proprietary AI technology, designed to enable our clients to be more productive and profitable, is accessible on Microsoft's Azure Marketplace.