$925,000 Non-Brokered Private Placement Closed
March 20, 2014 – Vancouver, B.C.Valdor Technology International Inc. (“Valdor”) (TSX: VTI-V) (OTC: VTIFF) is pleased to report that the first tranche of the non-brokered Private Placement announced January 29, 2014 has now closed. A total of 5,280,000 Units at a price of $0.10 per unit have been purchased for $528,000 and convertible debentures issued for $397,000 with total proceeds realized of $925,000. Each equity Unit consists of one common share of Valdor and one non-transferable three year share purchase warrant. Each warrant allows the holder thereof to purchase one further common share of Valdor at a price of $0.20 if exercised on or before February 18, 2017. A finder’s fee of 497,000 Units has been issued relative to this financing, in accordance with the policies of the TSX Venture Exchange. The 5,777,000 common shares issued are subject to a four month hold period expiring June 18, 2014. The warrants issued with the units will be subject to an acceleration provision. After four months have elapsed from closing, if Valdor’s shares trade above $0.60 for 20 consecutive trading days Valdor has the option to provide notice to the warrant holders that their warrants will expire if they are not exercised within 30 days. The proceeds from this private placement will be used for purchasing the business and assets of VideoWare, Inc., marketing of Niagara’s and Valdor’s line of fiber optic products, paying current liabilities and for general working capital.
Valdor will raise up to an additional $900,000 in a second tranche, by a combination of equity and/or debenture financing: 1) The non-brokered equity private placement component will be up to 9,000,000 units (the “Units”) at a price of $0.10 per Unit for aggregate gross proceeds of up to $900,000. Each Unit will be comprised of one common share and one non-transferable share purchase warrant. Each warrant will allow the holder thereof to purchase one additional common share at a price of $0.20 for a period of three years from the date of closing of the private placement. The warrants issued with the Units will be subject to an acceleration provision. After four months have elapsed from closing, if Valdor’s shares trade above $0.60 for 20 consecutive trading days Valdor has the option to provide notice to the warrant holders that their warrants will expire if they are not exercised within 30 days; 2) The debenture component will be to a maximum of $900,000 with the holder of the debenture receiving twelve percent (12%) per annum calculated annually and paid quarterly for three years on funds advanced. At the discretion of the holder 20% of the funds advanced may be converted into Valdor Units as described above.