First Cobalt Corp. (CVE:FCC) said it has established an at-the-market equity program (ATM programme) that allows it to issue up to $10 million of common shares from treasury to the public from time to time, at the company's discretion.
The company said it intends to use the net proceeds from any sales of common shares under the ATM Program, if any, for the advancement of its Refinery Project located in Ontario, Canada and for general corporate purposes.
Any sales of common shares are anticipated to be made in transactions that are deemed to be "at-the-market distributions" at the prevailing market price at the time of sale. Since the common shares will be distributed at trading prices prevailing at the time of the sale, prices may vary between purchasers and during the period of distribution.
Distributions of the common shares through the ATM Program, if any, will be made under the terms of an equity distribution agreement between the company and Cantor Fitzgerald Canada, as agent. The volume and timing of distributions under the program, if any, will be determined at the company's sole discretion.
The ATM Program will be effective until the earlier of the issuance and sale of all of the common shares issuable and December 26, 2022, unless terminated prior to such date by the company or its agent.
Warrants acceleration trigger
First Cobalt also noted that under the terms of the warrants issued as part of the company's March 2019 and February 2020 private placements, in the event that the closing price of First Cobalt's common shares on the TSXV is equal to or greater than $0.37 for a period of not less than 10 consecutive trading days, the company is permitted to accelerate the expiry date of each set of warrants to a date that is 20 calendar days from the date notice of such acceleration is provided to the holders of warrants.
The group said that acceleration trigger has been met as of the market close on Monday and the company has elected to accelerate the warrant expiry dates. On February 23, 2021, the company will provide holders of outstanding warrants with notice of the occurrence of the acceleration trigger and of its election to accelerate the expiry date of the warrants to March 15, 2021. Any warrants that have not been exercised by 5.00pm Toronto time on March 15, 2021 will be automatically cancelled, and of no further force or effect.
There are currently 2,957,482 warrants outstanding at a strike price of $0.27 per common share that will have their expiry date accelerated to March 15, 2021, from March 29, 2021; and 5,604,561 warrants outstanding at a strike price of $0.21 per common share that will have their expiry date accelerated to March 15, 202, from February 5, 2022.
Warrant holders wishing to exercise their warrants should contact their advisors and submit an exercise notice in accordance with the terms of the warrants, the group said.
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