Solar Alliance Energy Inc. plans to issue 6 million units at a price of 5 Canadian cents per unit for gross proceeds of C$300,000.
Each unit will consist of one common share of the company and one share purchase warrant. Warrant holders will be entitled to purchase one common share for 7 Canadian cents per share within one year from the date of issue.
Solar Alliance Energy CEO Myke Clark, Chairman Jason Bak and control shareholder Tom Anderson are expected to participate in the private placement.
The company said it reached a debt settlement agreement with certain senior management to fully settle an aggregate of $163,333.33 of unpaid fees for shares in the company.
As such, the company would issue up to 3,266,666 shares at a price of 5 Canadian cents per share to its CEO and Golden Oak Services, which provides CFO and corporate secretary services to Solar Alliance.
Both transactions are subject to the approval of the TSX Venture Exchange.