Carbeeza Inc. Announces Closing of $2.5 Million Private Placement

Rhea-AI Summary

Carbeeza Inc. (TSXV:AUTO)(OTCQB:CRBAF) has successfully closed its non-brokered private placement, raising $1.25 million through the issuance of 25 million units at $0.05 per unit. Each unit includes one common share and one warrant, with warrants exercisable at $0.15 for 24 months.

Company insiders participated in 12% of the offering, which qualifies as a related-party transaction under MI 61-101 but is exempt from formal valuation requirements. The proceeds will be used for working capital and general corporate purposes. All securities are subject to a four-month hold period, and the offering awaits final TSX Venture Exchange acceptance.

Carbeeza operates as a software company developing an AI-powered automotive marketplace platform that predicts optimal financing scenarios for consumers while maintaining anonymity, streamlining the car-buying process for both consumers and dealers.

Positive

• Secured $1.25M in fresh capital through private placement
• Insider participation of 12% shows management confidence
• No finder's fees paid, reducing transaction costs

Negative

• Significant dilution with 25M new units issued
• Low unit price of $0.05 indicates weak market valuation
• Additional dilution possible through warrant exercise at $0.15

CALGARY, AB / ACCESS Newswire / March 5, 2025 / Carbeeza Inc. ("Carbeeza" or the "Company") (TSXV:AUTO)(OTCQB:CRBAF) is pleased to announce that it has closed its previously announced non-brokered private placement. The Company issued a total of 25,000,000 units (each, a "Unit") at a price of $0.05 per Unit for gross proceeds of $1,250,000 (the "Offering"). Each Unit consists of one common share of the Company and one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to acquire one additional common share of the Company at an exercise price of $0.15 for a period of 24 months from issuance.

All securities issued in connection with the Offering are subject to a statutory hold period of four months and one day. The Company intends to use the proceeds of the Offering for working capital and general corporate purposes. No finders fees were paid in connection with the sale of the Units. The Offering is subject to final acceptance by the TSX Venture Exchange.

Insiders of the Company subscribed for 12% of the Offering. Participation by insiders of the Company in the Offering constitutes a related-party transaction as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance of securities is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 on the basis that the fair market value of the insiders' participation in the Offering, as determined in accordance with MI 61-101, shall not exceed 25% of the Company's market capitalization.

Carbeeza Inc.

Carbeeza is a Canadian-based software company whose platform is targeted to the automotive marketplace. It is the first application to harness the power of Artificial Intelligence to accurately predict the best financing scenario for consumers, all while keeping the consumer anonymous. Using state-of-the-art technology, Carbeeza brings the process of buying a car right to the phone, tailor-made for the consumer. Carbeeza is highly beneficial to both consumers and auto dealers.

ON BEHALF OF THE BOARD OF DIRECTORS OF CARBEEZA INC.

Sandro Torrieri, Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

For further information please contact:
Sandro Torrieri, Chief Executive Officer
Email: Investorrelations@carbeeza.com
Telephone: 1-855-216-8802
Website: www.carbeeza.com

Notice Regarding Forward-Looking Information:

This news release contains forward-looking statements including but not limited to statements regarding the Company's business, assets or investments, as well other statements that are not historical facts. Readers are 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 based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, investor interest in the business and prospects of the Company.

The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.

SOURCE: Carbeeza Inc.

View the original press release on ACCESS Newswire

FAQ

How much did Carbeeza (CRBAF) raise in its March 2025 private placement?

Carbeeza raised $1.25 million by issuing 25 million units at $0.05 per unit.

What are the terms of CRBAF's March 2025 warrant offering?

Each warrant allows purchase of one common share at $0.15 for 24 months from issuance.

How much insider participation was there in Carbeeza's 2025 private placement?

Insiders participated in 12% of the offering.

What will Carbeeza (CRBAF) use the private placement proceeds for?

The proceeds will be used for working capital and general corporate purposes.

How long is the hold period for CRBAF's March 2025 private placement securities?

Securities have a statutory hold period of four months and one day.