Novusterra Inc. Closes Oversubscribed Private Placement Financing
Novusterra Inc. has closed an oversubscribed private placement of $316,512, exceeding the $250,000 target by issuing 633,024 shares at $0.50 per share. The funds will support the S-1 registration and further development of graphene patents for energy storage and water filtration. The company has received approval for a 3-for-1 reverse stock split and has converted Class B shares to Class A shares, ensuring a 50% equity stake for American Resources Corporation in Novusterra.
- Oversubscribed private placement raised $316,512, facilitating financing initiatives.
- Secured sublicenses for two graphene patents, positioning the company for growth in energy storage and water filtration.
- Approved reverse stock split of 3-for-1 aims to enhance public equity financing prospects.
- Strong partnership with American Resources Corporation, ensuring 50% equity and operating income from graphene sales.
- None.
Company to use funds for S-1 registration filing process and further development of graphene patents for energy storage and water filtration markets.
MIAMA, FL / ACCESSWIRE / April 13, 2021 / Novusterra Inc. (Private) is pleased to announce that it has closed the non-brokered private placement of
It was previously announced that Novusterra Inc. secured a sub license of two patents pertaining to graphene production and roll to roll graphene production from American Resources Corporation (NASDAQ:AREC). Novusterra intends to further the development of the patents alongside American Resources technology partners with a goal of developing specific technology applications for energy storage and water filtration.
Novusterra has also received all necessary approvals to conduct a reverse stock split of 3 for 1 to better position the company for a public equity financing. The company has also received notice that American Resources Corporation has fully converted its Class B Common Stock into Class A Common Stock and the company has received all necessary approvals to cancel the Class B Common Stock from its authorized shares outstanding.
Andrew Weeraratne, Director and CEO of Novusterra Inc. commented, "We are excited to have support from the investment community in this existing venture as we focus on positioning the company for growth. We believe with further development of the patents for our specific targeted applications that graphene can represent a major breakthrough in energy storage and worldwide water filtration and water quality. We have had a long relationship with the principals of American Resources and we are excited that they had confidence in our ability to further develop and commercialize these two patents to create value for our combined shareholders. We look forward to communicating further milestones as we continue to execute on our growth initiatives."
Pursuant to the non-exclusive sublicense agreement that Novusterra signed with American Resources, American Resources was provided an equity stake representing approximately a
About Novusterra Inc.
Novusterra Inc. mission is to harness the potential to produce high quality graphene from carbon based deposits to be utilized in high tech application within the energy storage and water filtration marketplaces. The patents we have secured are designed to make use of an abundant and low-cost feedstock (coal) in an environmentally friendly process.
Special Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities 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 may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Company Contact:
Andrew Weeraratne
CEO and Director
info@novusterrainc.com
SOURCE: Novusterra Inc.
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FAQ
What was the amount raised in Novusterra's recent private placement?
What will Novusterra use the funds from the private placement for?
What is the significance of the reverse stock split approved by Novusterra?
What relationship does Novusterra have with American Resources Corporation?
