First tranche closed
Global Cobalt closes first tranche of financing
2015-05-11 09:06 ET - News Release
Mr. Erin Chutter reports
GLOBAL COBALT SECURES INITIAL FUNDING FOR SPIN-OUT TRANSACTION AND CLOSES FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT
Global Cobalt Corp. has closed the first tranche of its non-brokered private placement previously announced April 27, 2015. The First Tranche closing consisted of the issuance of a total of 2,990,000 Units at a price of $0.05 per Unit to four placees, for gross proceeds of $149,500.
Members of Global Cobalt's management team ("Management") were participants in the Private Placement. There will be no fee payable on the Management portion of the Private Placement.
The Company would also like to clarify that as part of the Plan of Arrangement Transaction it has been proposed that shareholders of Global Cobalt at the time prior to the effective date will be eligible to receive equal securities in SpinCo. The effective date will be set at the conclusion of the Transaction subsequent to the Annual General Special Meeting.
Erin Chutter, President and CEO of Global Cobalt, stated:
"This substantial investment by the management team of Global Cobalt in the financing is a strong endorsement for the Transaction moving forward."
Proceeds from the Offering will be used to complete the plan of arrangement and spin-out transaction announced on April 7th, 2015.
As announced, the non-brokered private placement consists of the Company issuing up to 5,000,000 Units at a price of $0.05 per Unit. Each Unit consists of one common share of the Company (a "Share") and one common share purchase warrant (a "Warrant") entitling the holder to acquire an additional common share of the Company (a "Warrant Share") for a period of 24 months following the Closing Date at an exercise price of $0.07 per Warrant Share.
In connection with the Offering, the Company may pay finder's fees to arm's-length third parties consisting of: (i) cash commission of up to 8% of the gross proceeds of the Offering; and (ii) broker warrants ("Broker Warrants") in an amount up to 8% of the total number of Units under the Offering. Each Broker Warrant will expire 24 months from the date of issue (the "Broker Warrant Expiry Date") and will entitle the holder thereof to purchase one Unit of the Company at a price of $0.07 per Unit at any time up until the Broker Warrant Expiry Date.
The securities issued in the private placement will be subject to a hold period of four months plus one day following the issue date, under applicable Canadian securities legislation.
The private placement is subject to TSX Venture Exchange approval.
We seek Safe Harbor.
© 2015 Canjex Publishing Ltd. All rights reserved.