AbraPlata Closes $18.0 Million Private Placement AbraPlata Closes $18.0 Million Private Placement with $9.9 Million Investment from Eric Sprott
September 01, 2020 -- (AbraPlata Resource Corp.) --
(TheNewswire)Toronto - TheNewswire - September 01, 2020 - AbraPlata Resource Corp. (TSXV:ABRA)(OTC:ABBRF) ("AbraPlata" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement (the "Placement"). In connection with the closing of the Placement, the Company issued 66,666,666 units (each, a "Unit") at a price of $0.27 per Unit for gross proceeds of $18.0 million. Each Unit consisted of one common share in the equity of the Company (each, a "Common Share") and one-half of one share purchase warrant (each whole warrant, a "Warrant").
Each Warrant entitles the subscriber to purchase one additional Common Share at a price of $0.40 until the second (2nd) anniversary of the closing date of the Placement. Notwithstanding the foregoing, in the event that, following the January 2, 2021, the volume weighted average price on the TSX Venture Exchange has been at least $0.70 for 20 consecutive trading days, the Company may deliver a notice to the holders of Warrants accelerating the Expiry Date to the date that is 30 days following such notice, and any unexercised Warrants after such period shall automatically expire.
Mr. Eric Sprott through 2176423 Ontario Ltd. ("2176423"), a corporation which is beneficially owned by him, acquired 36,481,500 Units pursuant to the Private Placement. After closing of the Placement, Mr. Sprott now beneficially owns or controls 62,481,500 Common Shares and 44,240,750 Common Share purchase warrants, representing approximately 15.8% of the Company's issued and outstanding Common Shares on a non-diluted basis and 24.3% on a partially diluted basis assuming exercise of all warrants held by Mr. Sprott. Prior to the closing of the Placement, Mr. Sprott owned 26,000,000 Common Shares and 26,000,000 Common Share purchase warrantsr. Sprott has signed an undertaking not to exercise his warrants until such time as the Company can obtain disinteres. Mted shareholder approval of the creation of a new control person, which is required once Mr. Sprott passes the 20% ownership threshold. The Company has agreed to call a shareholders' special meeting within 4 months of the closing of the Placement, at which time such approval will be sought.