PlasCred Circular Innovations Inc. Announces Closing of Second Tranche of Upsized Non-Brokered Private Placement Under Listed Issuer Financing Exemption

Rhea-AI Summary

PlasCred Circular Innovations (CSE:PLAS, FSE:XV2, OTC:MGPRF) closed the second tranche of its upsized non-brokered $7,000,000 private placement, issuing 9,746,000 units at $0.17 for gross proceeds of $1,656,820.

Each unit includes one share and a 36‑month warrant at $0.22, with an acceleration clause above $0.40. Combined with the first tranche, total proceeds reach $6,683,820.

Funds will support development of the Neos advanced plastic recycling facility and general working capital. The financing used the listed issuer financing exemption, and units sold to Canadian residents are immediately freely tradeable.

AI-generated analysis. Not financial advice.

Positive

• Second tranche raises $1,656,820 from 9,746,000 units at $0.17
• Total private placement proceeds reach $6,683,820 across both tranches
• Financing supports Neos recycling facility engineering, permitting and equipment procurement
• Units include 36‑month $0.22 warrants, potentially adding future capital
• Neos project supported by five‑year offtake agreement with global commodities firm

Negative

• Issuance of 9,746,000 new shares plus equal number of warrants dilutes shareholders
• Finders’ fees include $93,843 cash, reducing net proceeds from the financing
• 549,020 broker warrants at $0.22 add further potential future dilution

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Calgary, Alberta--(Newsfile Corp. - May 21, 2026) - PlasCred Circular Innovations Inc. (CSE: PLAS) (FSE: XV2) ("PlasCred" or the "Company") is pleased to announce that, as a result of strong investor demand, it has closed the second tranche (the "Second Tranche") of its previously announced upsized non-brokered $7,000,000 private placement (the "Offering"), issuing 9,746,000 units of the Company (each, a "Unit") at a price of $0.17 per Unit for aggregate gross proceeds of $$1,656,820, pursuant to the listed issuer financing exemption of National Instrument 45-106 - Prospectus Exemptions ("NI 45-106"). Proceeds from the Offering will be used to advance development of the Company's advanced plastic recycling commercial facility ("Neos"), to be located at CN Rail's Scotford Yard in Alberta's Industrial Heartland, including detailed engineering, permitting, procurement of long-lead equipment, and also for general working capital.

Each Unit is comprised of one common share ("Common Share") in the capital of the Company and one common share purchase warrant (the "Warrant"). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.22 per Common Share for a period of 36 months following the closing date of the applicable tranche (each, a "Closing Date"). The Warrants will be subject to an early expiration provision whereby if, during a period of 10 consecutive trading days between the applicable Closing Date and the expiry of the Warrants, the daily volume-weighted average trading price of the Common Shares on the CSE (or such other stock exchange where the majority of the trading volume occurs) exceeds $0.40 for each of those 10 consecutive days, the Company may, within 30 days of such an occurrence, give written notice to the holders, following which notice the holders of the Warrants will have 30 days to exercise their Warrants. Any Warrants issued pursuant to the upsized Offering are subject to a restriction on exercise expiring 61 days from the applicable Closing Date.

The Second Tranche was conducted pursuant to the listed issuer financing exemption under Part 5A of NI 45-106, as amended by Coordinated Blanket Order 45-935 - Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the "Listed Issuer Financing Exemption"). The securities issued from the sale of Units under the Second Tranche are immediately freely tradeable in accordance with applicable Canadian securities legislation if sold to purchasers resident in Canada.

The Second Tranche closing is a significant milestone for PlasCred and advances the Company's path to construction of Neos, a modular advanced plastic recycling facility designed to process 100 tonnes per day of mixed plastic waste into refined hydrocarbon condensate. Neos is backed by a previously announced five-year offtake agreement with a global commodities firm and is expected to be located at CN Rail's Scotford Yard in Alberta's Industrial Heartland, one of North America's leading petrochemical clusters.

In connection with the Second Tranche closing, the Company paid finders' fees to eligible persons who introduced subscribers to the Second Tranche, consisting of: (i) a cash commission equal to 7% of the gross proceeds raised from the sale of Units to subscribers introduced by such person; and (ii) the issuance of non-transferable broker warrants entitling the holder thereof to acquire that number of Common Shares equal to 7% of the number of Units sold to subscribers introduced by such person, exercisable at a price of $0.22 per Common Share for a period of 36 months following the Closing Date of the Second Tranche. In connection with the Second Tranche, the Company paid an aggregate of $$93,843 in cash and issued an aggregate of 549,020 broker warrants to finders.

Combined with the first tranche, which closed for gross proceeds of $5,027,550, the Second Tranche brings aggregate gross proceeds under the Offering to $6,683,820.

There is an amended and restated offering document (the "Offering Document") related to the upsized Offering that can be accessed at the Company's website and under the Company's profile at www.sedarplus.ca. Prospective investors should read this Offering Document before making an investment decision.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, nor will they be, registered under the U.S. Securities Act or under any U.S. state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

About PlasCred Circular Innovations Inc.
PlasCred is an Alberta-based company developing an advanced plastic recycling facility. The Company's engineered, modular platform converts mixed plastic waste into refined hydrocarbon condensate for use in virgin plastic production, petrochemical feedstock, and upstream energy applications. 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
Email: IR@plascred.com

Forward-looking Statements

Forward-looking statements in this release include but are not limited to the use of proceeds of the upsized Offering. Forward-looking statements are based on management's current assumptions and expectations, which are subject to known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to differ materially from those expressed or implied. Such risks and uncertainties include, without limitation: construction, commissioning, and start-up risks; cost overruns; delays or disruptions in the supply chain; ability to achieve and maintain nameplate capacity at scale; changes in feedstock availability, composition, or pricing; fluctuations in commodity prices and foreign exchange rates; failure of counterparties to perform under offtake, financing, or strategic agreements; changes in applicable laws, regulations, or EPR requirements; inability to secure or maintain permits; adverse changes in market demand for advanced recycling products; evolving ESG reporting standards; technology performance or reliability issues; and general economic, political, and capital market conditions. A discussion of these and other factors that may affect future results is contained in the Company's continuous disclosure filings available under its profile on SEDAR+ at www.sedarplus.ca. Forward-looking statements are not guarantees of future performance, and readers should not place undue reliance on them. Except as required by applicable securities laws, the Company undertakes no obligation to revise or update any forward-looking statements to reflect new events, circumstances, or otherwise.

The Canadian Securities Exchange (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.

/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298515

FAQ

What did PlasCred (MGPRF) announce on May 21, 2026 about its private placement?

PlasCred announced closing the second tranche of its upsized non-brokered private placement, raising $1,656,820. According to the company, it issued 9,746,000 units at $0.17 each, bringing total offering proceeds to $6,683,820 across both tranches.

How many units and warrants were issued in PlasCred’s (MGPRF) second tranche financing?

PlasCred issued 9,746,000 units, each with one share and one warrant. According to the company, each warrant allows purchase of a common share at $0.22 for 36 months, with an acceleration feature if the share price exceeds $0.40 for 10 consecutive trading days.

What will PlasCred (MGPRF) use the $6,683,820 private placement proceeds for?

PlasCred plans to use proceeds to advance its Neos advanced plastic recycling facility and for working capital. According to the company, funds support detailed engineering, permitting, long‑lead equipment procurement, and general corporate purposes linked to the Neos commercial development.

How does the PlasCred (MGPRF) warrant structure work in the May 2026 financing?

Each unit warrant lets holders buy one share at $0.22 for 36 months after closing. According to the company, warrants may expire early if the volume‑weighted share price exceeds $0.40 for 10 consecutive trading days, and exercise is restricted for 61 days post‑closing.

What finders’ fees were paid in PlasCred’s (MGPRF) second tranche private placement?

PlasCred paid cash commissions and issued broker warrants to eligible finders in the second tranche. According to the company, cash fees totaled $93,843 and 549,020 broker warrants were issued, each exercisable at $0.22 per share for 36 months after the closing date.

How does the Neos recycling project relate to PlasCred’s (MGPRF) new financing?

The financing is intended to help move the Neos recycling facility toward construction and operation. According to the company, Neos is designed to process 100 tonnes per day of mixed plastic waste and is supported by a five-year offtake agreement with a global commodities firm.

Are PlasCred’s (MGPRF) new private placement securities freely tradeable in Canada?

Yes, units sold under the second tranche are immediately freely tradeable for Canadian residents. According to the company, the offering used the listed issuer financing exemption, allowing securities issued under this tranche to trade without a hold period under applicable Canadian securities laws.