Tantalus Closes C$10.6M Overnight Marketed Financing

BURNABY, BC – August 12, 2021 – Tantalus Systems Holding (TSX: GRID) (the “Company” or “Tantalus”) today announces that the Company has closed its previously announced overnight marketed public offering by issuing 4,710,110 common shares at C$2.25 per share for gross proceeds of C$10.6M (the “Offering”), inclusive of 265,666 common shares issued pursuant to the partial exercise of the over-allotment option. Canaccord Genuity Corp. and Cormark Securities Inc. acted as co-leads of the offering that included Beacon Securities Limited, PI Financial Corp. and Paradigm Capital Inc. as part of the syndicate (collectively, the “Underwriters”).

“Over the past six months, Tantalus successfully transitioned into a publicly-traded company by initially listing on the TSX Venture Exchange by way of a “Qualifying Transaction” and quickly graduating to the TSX,” said Mr. Peter Londa, President and CEO of Tantalus. “By accessing the public markets, we secured in that time frame more than C$20M in capital to strengthen our balance sheet and accelerate our multi-pronged growth strategy. As we look toward the future, we plan on allocating capital to strategic initiatives to expand our growing market position within the public power and electric cooperative utility sector, including investments in our sales and marketing efforts, accelerating research and development initiatives to deliver next-generation solutions that digitize the distribution grid and pursuing a number of corporate development initiatives that may include strategic partnerships, mergers and acquisitions.”

In consideration for their services provided in connection with the Offering, the Underwriters received a cash commission equal to 6.0% of the gross proceeds of the Offering. The Company also issued to the Underwriters 282,606 compensation warrants (the “Compensation Warrants”), representing 6.0% of the common shares issued under the Offering, with each Compensation Warrant exercisable for one common share at an exercise price of $2.25 for a period of two years following the closing, subject to adjustment in certain events.

Tantalus will file and announce its Q2 financial results on August 16, 2021.

About Tantalus

Tantalus is a smart grid technology company that transforms aging one-way grids into future-proofed multi-directional grids that improve the efficiency, reliability and sustainability of public power and electric cooperative utilities and the communities they serve. Our solutions are purpose-built to allow utilities to restore power quickly after major disruptions, adapt to rapidly shifting consumer expectations and population shifts, innovate new solutions based on the adoption of distributed energy resources and evolve their grid infrastructure at their own pace without needless cost or complexity. All this gives our user community the flexibility they need to get the most value from existing infrastructure investments while planning for future requirements.

Forward Looking Statement:

This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words “believes”, “may”, “plans”, “will”, “anticipates”, “intends”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such expressions. Forward-looking information in this news release includes statements regarding the Offering generally, including our planned allocation of capital to strategic initiatives to expand our growing market position within the public power and electric cooperative utility sector, including accelerating research and development initiatives to deliver next-generation solutions that digitize the distribution grid, pursuing a number of corporate development initiatives that may include strategic partnerships, mergers and acquisitions, and investing in sales and marketing initiatives.

In connection with the forward-looking information contained in this news release, Tantalus has made numerous assumptions, regarding, among other things: that financial markets will not in the long term be adversely impacted by the COVID-19 pandemic and the absence of material adverse changes in our business, our industry or the global economy. While Tantalus considers these assumptions to be reasonable, these assumptions are inherently subject to significant uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Tantalus’ actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. Known risk factors include, among others: the impacts of COVID-19 are unpredictable and could have significant impacts on Tantalus’ financial performance; sales cycles to Tantalus’ customers can be lengthy and unpredictable and require significant employee time with no assurances that a prospective customer will select Tantalus’ products and services; Tantalus’ financial and operational performance significantly depends on its ability to attract and retain customers and its ability to develop new products and to enhance and sustain the quality of existing products to retain such customers; Tantalus depends on a limited number of key suppliers and if such suppliers fail to provide Tantalus with sufficient quantities of components at acceptable levels of quality and at anticipated costs, Tantalus’ revenue and operating results could be materially and adversely affected; Tantalus has a prior history of operating losses and Tantalus may not sustain profitability on a quarterly or annual basis; Tantalus’ quarterly results are inherently unpredictable and subject to substantial fluctuations; Tantalus’ success depends in part on Tantalus’ ability to integrate its technology into devices and its relationship with device manufacturers; Tantalus’ marketing efforts depend significantly on Tantalus’ ability to receive positive references from Tantalus’ existing customers; the markets for Tantalus’ products and services, smart grid, smart city, and broader IoT technology in general, are still developing – if the markets develop less extensively or more slowly than Tantalus expects, Tantalus’ business could be harmed; Tantalus operates in a highly competitive industry and Tantalus competes against many companies with substantially greater financial and other resources, and Tantalus’ market share and results of operations may be reduced if Tantalus is unable to respond to competitors effectively; Tantalus is dependent on the utility industry, which has experienced volatility in capital spending – this volatility could cause Tantalus’ results of operations to vary significantly from period to period; Tantalus’ reliance on certain infrastructure and information technology systems make it vulnerable to the potential adverse effects of cyber-attacks and other breaches; if Tantalus’ products contain defects or otherwise fail to perform as expected, Tantalus could be liable for damages and incur unanticipated warranty, recall and other related expenses, Tantalus’ reputation could be damaged, Tantalus could lose market share and, as a result, Tantalus’ financial condition or results of operations could suffer; the nature of Tantalus’ business exposes it to the unpredictable risks of contractual disputes; the loss of key employees and the inability to attract and retain qualified personnel could harm Tantalus’ business; Tantalus’ business is exposed to potential risks associated with international sales and operations; foreign exchange rate fluctuations could harm Tantalus’ results or operations; Tantalus and its customers operate in a highly regulated business environment and changes in regulation could impose costs on Tantalus or make Tantalus’ products less economical; Tantalus’ inability to acquire and integrate other businesses, products or technologies could seriously harm Tantalus’ competitive position; intellectual property infringement claims could be costly and time-consuming to prosecute or defend; substantially all of Tantalus’ current products depend on the availability and are subject to the regulation of radio spectrum in the United States and abroad; and interruptions or delays in services from Tantalus’ third-party data center facilities, or problems with the third-party hardware or software that Tantalus employs, could impair the delivery of its services and harm Tantalus’ business.

A more complete discussion of the risks and uncertainties facing Tantalus is disclosed under the heading “Risk Factors” in Tantalus’ Annual Information Form dated May 18, 2021, as well as Tantalus’ continuous disclosure filings with Canadian securities regulatory authorities available at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Tantalus disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law. Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this news release.

Contact Tantalus:

Jacquie Hudson

Marketing Communications Manager


[email protected]


Investors Relations:

Linda Armstrong

Investor Relations

647-456-9223 [email protected]

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