FCO Financing newsVancouver, B.C., March 18, 2010, Formation Metals Inc. (FCO-TSX) (the "Company") is pleased to announce a non-brokered private placement of up to 5,750,000 Units of the Company to qualified investors at a price of $1.50 per Unit (the "Offering"), for gross proceeds of up to $8,625,000. The Offering, which is subject to regulatory approval, is anticipated to close on or about April 30, 2010 or such other date as may be determined by the Company (the "Closing Date"). Each Unit is comprised of one common share and one-half of one transferable common share purchase warrant, each whole common share purchase warrant entitling the holder to purchase one common share of the Company at a price of $2.00 per share for a period of twenty four months from the Closing Date, subject to the Company's right to accelerate the expiry date as described below (the "Acceleration Right"). The securities issued pursuant to the Offering are subject to a 4 month hold period in Canada. Non-arm's length parties may participate in up to 10% of the Offering.
If, at any time following the Closing Date, the volume weighted average trading price of the Company's common shares on the Toronto Stock Exchange for any 10 consecutive trading days is $2.55 per share or more, the Company may reduce the period within which the warrants may be exercised by giving notice to the holders of the warrants, by way of news release, that the expiry date for exercise of the warrants has been accelerated, in which case the warrants will expire on the twenty first day following the date of such notice.
Proceeds from the private placement are intended to be used for general corporate purposes and for working capital of the Company. The Company is proposing to pay a fee in cash to finders who introduce participants in the private placement to the Company.
The common shares and warrants that will be issued in connection with the private placement will not be registered under the United States Securities Act of 1933, as amended, or any State securities laws and may not be sold or offered for sale in the United States or to U.S. Persons or otherwise distributed in the United States, except in reliance on available registration exemptions.
Formation Metals Inc.
"Mari-Ann Green"
Mari-Ann Green,
C.E.O.