The placement was originally announced for 4,714,286 units and proceeds of $1,650,000 but was increased to 4,899,382 units for gross proceeds of $1,714,783 to accommodate additional subscribers.
Each unit in the placement is comprised of one common share and one-half of a common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the company at a price of $0.55 for five years following closing.
However, at the discretion of the company, if the closing price of the company’s common shares on the TSX Venture Exchange is C$0.60 or greater per common share during any five consecutive trading day period the warrants will expire at 4.00pm Vancouver time on the 30th day after the date on which the company provides notice of such accelerated expiry to the warrant holders, and the warrant holders will have no further rights to acquire any common shares of the company under the warrant.
One insider of the company purchased or acquired direction and control over a total of 1,708,039 units under the private placement.
In connection with the placement, the company will pay an aggregate cash finder's fee of $42,000 and will issue an aggregate of 60,000 share purchase warrants to certain finders. Each finder's warrant entitles the holder to purchase one common share of the company at a purchase price of $0.55 for a period of five years following the closing of the private placement, subject to the accelerated expiry.
Completion of the placement remains subject to regulatory approval. All securities issued will be subject to a statutory four-month hold period.
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