News on PP closing today GrowMax closes $1.22M private placement
Mr. Kal Malhi reports
GROWMAX ANNOUNCES CLOSING OF PRIVATE PLACEMENT
GrowMax Resources Corp. has closed its non-brokered private placement resulting in gross proceeds of approximately $1,224,000. The placement consisted of the issuance of 18,830,769 units at a price of 6.5 cents per unit. Each unit consisted of one common share of the company and one common share purchase warrant, with each warrant exercisable to acquire one share at eight cents per share until July 23, 2026.
All securities issued in the placement are subject to a hold period expiring Nov. 24, 2021.
The company intends to use the proceeds of the placement for general working capital purposes. The placement is subject to final acceptance by the TSX Venture Exchange upon filing of final documentation.
Certain insiders of the company acquired units in the placement. The participation by such insiders in the placement constituted a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). Such participation was exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 based on the fact that neither the fair market value of the shares subscribed for by the insiders, nor the consideration for the shares paid by such insiders, exceeded 25 per cent of the company's market capitalization.
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