New Found acquired 6,666,667 units under the private placement for total consideration of $4-million. Prior to the financing, New Found beneficially owned and controlled 6,562,799 common shares. As a result of the private placement, New Found beneficially owns and controls 13,229,466 common shares of the company and 6,666,667 warrants, representing approximately 13.6 per cent of the issued and outstanding common shares of the company on a non-diluted basis and approximately 19.2 per cent on a fully diluted basis assuming exercise of the warrants.
The units were acquired by New Found for investment purposes. New Found has a long-term view of the investment and may acquire additional securities of the company, including on the open market or through private acquisitions, or sell securities of the company, including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other factors that New Found considers relevant from time to time.