Item 1.01 Entry into a Material Definitive Agreement.

On January 25, 2022, Renovare Environmental, Inc. (the "Company") completed a private placement with several investors, wherein a total of 2,141,667 shares (the "Shares") of the Company's Common Stock, par value $0.0001 per share (the "Common Stock") were issued at a purchase price of $0.60 per share, with warrants to purchase up to 2,141,667 shares of Common Stock at an exercise price of $0.60 per share (the "Purchaser Warrants"), for a total purchase price of approximately $1.285 million (the "Offering"). The Purchaser Warrants are immediately exercisable on the date of issuance and expire five years from the date of issuance.

The Offering raised net cash proceeds of approximately $1.1 million (after deducting the placement agent fee and expenses of the Offering). The Company intends to use the net cash proceeds from the Offering for general working capital and administrative purposes.

The Company engaged EF Hutton, division of Benchmark Investments, LLC ("EF Hutton") as the Company's placement agent for the Offering pursuant to a Placement Agency Agreement (the "PAA") dated as of January 21, 2022. Pursuant to the PAA, the Company agreed to pay EF Hutton a cash placement fee equal to 7.0% of the gross proceeds of the Offering, an additional cash fee of $70,000 for EF Hutton's expenses.

In connection with the Offering, the Company entered into a Securities Purchase Agreement (the "Purchase Agreement") with investors containing customary representations and warranties. The Company and investors also entered into a Registration Rights Agreement (the "Registration Rights Agreement"), pursuant to which the Company will be required to file a resale registration statement (the "Registration Statement") with the Securities and Exchange Commission (the "SEC") to register for resale the Shares and the shares of Common Stock issuable upon exercise of the Purchaser Warrants and Representative Warrants, promptly following the Closing Date but in no event later than 15 calendar days after the effective date of the Registration Rights Agreement, and to have such Registration Statement declared effective by the Effectiveness Date (as defined in the Registration Rights Agreement). The Company will be obligated to pay certain liquidated damages to the investors if the Company fails to file the Registration Statement when required, fails to file or cause the Registration Statement to be declared effective by the SEC when required, or fails to maintain the effectiveness of the Registration Statement pursuant to the terms of the Registration Rights Agreement.

The representations, warranties and covenants contained in the Purchase Agreement and the Registration Rights Agreement were made solely for the benefit of the parties to the Purchase Agreement and may be subject to limitations agreed upon by the contracting parties. In addition, such representations, warranties and covenants (i) are intended as a way of allocating the risk between the parties to the Purchase Agreement and not as statements of fact, and (ii) may apply standards of materiality in a way that is different from what may be viewed as material by stockholders of, or other investors in, the Company. Accordingly, forms of the Purchase Agreement and the Registration Rights Agreement are filed with this report only to provide investors with information regarding the terms of transaction, and not to provide investors with any other factual information regarding the Company. Stockholders should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the Company. Moreover, information concerning the subject matter of the representations and warranties may change after the date of the Purchase Agreement and the Registration Rights Agreement, which subsequent information may or may not be fully reflected in public disclosures.

The Offering was exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act") pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws. Each of the Purchasers represented that it is an accredited investor within the meaning of Rule 501(a) of Regulation D, and was acquiring the securities for investment only and not with a view towards, or for resale in connection with, the public sale or distribution thereof. The securities were offered without any general solicitation by the Company or its representatives.

The foregoing description of each of the Purchase Agreement, PAA, Registration Rights Agreement, and form of Purchaser Warrant is qualified in its entirety by reference to the forms of such documents which are filed hereto as Exhibits 10.1, 10.2, 10.3, and 10.4 respectively.




Item 3.02    Unregistered Sales of Equity Securities

The matters described in Section 1.01 of this Current Report on Form 8-K are incorporated herein by reference. In connection with the issuance of the securities described in Item 1.01, the Company relied upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D promulgated thereunder for transactions not involving a public offering.




Item 8.01    Other Events.

On January 21, 2022, the Company issued a press release announcing the pricing of the Offering. On January 25, 2022, the Company issued a press release announcing the closing of the Offering. The press releases, which are furnished in this report as Exhibits 99.1 and 99.2, shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section.




Item 9.01    Financial Statement and Exhibits.



Exhibit
Number                                     Description

  10.1       Form of Securities Purchase Agreements
  10.2       Form of Placement Agency Agreement dated January 21, 2022
  10.3       Form of Registration Rights Agreement
  10.4       Form of Common Stock Purchase Warrants
  99.1       Press Release dated January 21, 2022
  99.2       Press Release dated January 25, 2022
104        Cover Page Interactive Data File (embedded within the Inline XBRL document)

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