Announces Non-Brokered Private Placement for Up to $1.0 M TORONTO, July 23, 2021 (GLOBE NEWSWIRE) -- 79North Inc. (CSE: JQ; OTCQB: SVNTF; FRA: 6120) (“79North” or the “Company”) is pleased to announce a non-brokered private placement of up to 6,666,667 units of the Company (the "Units") at a price of $0.15 per Unit for aggregate gross proceeds of up to $1,000,000 (the "Offering"). Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrants, a “Warrant”). Each Warrant will entitle the holder thereof to purchase one common share of the Company at $0.25 per common share for a period of three years following the closing date of the Offering.
Patrick Sheridan Jr. has indicated his intention to subscribe as a lead order for the Offering. Jon North, President & CEO of the Company, commented: “We welcome Mr. Sheridan as a strategic shareholder of the Company. This is an exciting time for 79North as we continue to ramp up our exploration activities and commence drilling at the Nassau Project.”
It is expected that the net proceeds from the Offering will be primarily used for exploration activities at the Company’s properties in Suriname, and general working capital purposes.
Any securities to be issued under the Offering will be subject to a hold period of four months and a day from the closing date of the Offering in accordance with applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws.
It is anticipated that insiders of the Company may participate in the Offering. By virtue of their participation, the Offering would constitute a "related party transaction" under applicable securities laws. The Company expects to release a material change report including details with respect to the related party transaction less than 21 days prior to the closing of the Offering, which the Company deems reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the Offering in an expeditious manner. As the related party transaction will not exceed specified limits and will constitute a distribution of securities for cash, it is expected that neither a formal valuation nor minority shareholder approval will be required in connection with the Offering.