PlasCred Circular Innovations Inc. Announces First Tranche of Equity Growth Facility

Rhea-AI Summary

PlasCred Circular Innovations Inc. (CSE: PLAS) (FSE: XV2) has announced the first tranche of its Equity Growth Facility. The company closed an Initial Subscription on October 4th, 2024, with an arm's length institutional investor agreeing to subscribe for 739,120 common shares at a price of $0.0668 per share. This is part of an equity facility with a principal amount of up to CAD$10,000,000.

The proceeds from this Initial Subscription will be used for working capital. The subscription followed a 30-day Pricing Period that began after PlasCred submitted a Capital Call on July 4, 2024. The securities issued are in accordance with ASC Rule 72-501 and are not subject to a hold period. They are not registered under the U.S. Securities Act and cannot be offered or sold within the United States without registration or an applicable exemption.

Positive

• Secured first tranche of equity growth facility up to CAD$10,000,000
• Raised capital through 739,120 common shares at $0.0668 per share
• Proceeds to be used for working capital, potentially improving financial flexibility

Negative

• Potential dilution of existing shareholders due to new share issuance

Calgary, Alberta--(Newsfile Corp. - October 9, 2024) - PlasCred Circular Innovations Inc. (CSE: PLAS) (FSE: XV2) ("PlasCred" or the "Company") a transformative leader in the plastic waste advanced recycling sector is pleased to announce that pursuant to the Equity Growth Agreement (the "Growth Agreement") announced on April 29^th, 2024 with an arm's length institutional investor (the "Investor"), in respect of an equity facility in the principal amount of up to CAD$10,000,000 (the "Equity Facility"), the Investor has agreed to subscribe for 739,120 common shares in the capital of the Company (each, a "Common Share"), at a price equal to $0.0668 per Common Share (the "Initial Subscription"). The Company closed the Initial Subscription on October 4^th, 2024 (the "Closing").

The Company will use the proceeds of the Initial Subscription for working capital.

Pursuant to the terms of the Growth Agreement, the Company submitted a capital call to the Investor on July 4, 2024 (a "Capital Call"), pursuant to which a 30-day pricing Period began (the "Pricing Period"). Following the Pricing Period, the Investor agreed to subscribe for 739,120 Common Shares. The complete details of the Growth Agreement were publicly disclosed on August 15, 2024.

The securities issued in connection with the Equity Facility are being issued in accordance with the requirements of the ASC Rule 72-501 - Distributions to Purchasers outside of Alberta and are not subject to a hold period.

None of the securities will be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws. Accordingly, the securities issuable under the Equity Facility may not be offered or sold within the United States, its territories or possessions, any state of the United States or the District of Columbia (collectively, the "United States") or to, or for the account or benefit of, U.S. persons (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and all applicable state securities laws or an exemption from such registration requirements is available. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities issuable under the Equity Facility within the United States or to, or for the account or benefit of, U.S. persons.

About PlasCred Circular Innovations Inc.

PlasCred is at the forefront of rebalancing the future of plastics. The company is transforming plastic waste by granting it a valuable second life. With a vision of advancing towards a climate-positive future, PlasCred aspires to be among the largest advanced plastic waste recyclers in North America and globally. Their groundbreaking patent-pending technology is set to revolutionize the approach to plastic waste management and recycling. PlasCred is also developing strategic partnerships with CN Rail, Palantir Technologies Inc., and Fibreco Export Inc., providing PlasCred with unparalleled operational intelligence and logistics support across North America and globally for transportation and handling of plastic waste.

For further information on PlasCred, visit our website at www.PlasCred.com.

ON BEHALF OF THE BOARD

Troy Lupul - President & CEO

Contact Information

For more information, please contact:
PlasCred Circular Innovations Inc.
Troy Lupul
+1 403-430-3004
Email: IR@PlasCred.com

Forward-Looking Statements

This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance, or achievements that PlasCred anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking statements are based on assumptions, including expectations and assumptions concerning the metaverse and the Company's growth plan. While PlasCred considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; future legislative, tax and regulatory developments. Readers are cautioned that the foregoing list is not exhaustive and other risks set out in public disclosure recorded and filed under the Company's profile on www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions, or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. For more information on the risk, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the public filings of PlasCred Circular Innovations Inc. which are available on SEDAR at www.sedarplus.ca. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. PlasCred Circular Innovations Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release. To view the source version of this press release, please visit

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/226066

FAQ

What is the value of PlasCred's (MGPRF) recent equity subscription?

PlasCred Circular Innovations Inc. closed an Initial Subscription for 739,120 common shares at $0.0668 per share on October 4th, 2024, as part of an equity facility with a principal amount of up to CAD$10,000,000.

How will PlasCred (MGPRF) use the proceeds from the equity subscription?

PlasCred Circular Innovations Inc. will use the proceeds from the Initial Subscription for working capital purposes.

When did PlasCred (MGPRF) announce the Equity Growth Agreement?

PlasCred Circular Innovations Inc. announced the Equity Growth Agreement on April 29th, 2024, with the complete details publicly disclosed on August 15, 2024.

Are the securities issued by PlasCred (MGPRF) subject to a hold period?

No, the securities issued in connection with the Equity Facility are not subject to a hold period, as they are being issued in accordance with ASC Rule 72-501.