This news is a good sign of what lies ahead Ucore Rare Metals to extend 18.22 million warrants
Ucore Rare Metals Inc (C:UCU)
Shares Issued 197,576,472
Last Close 2/22/2016 $0.345
Tuesday February 23 2016 - News Release
Mr. Jim McKenzie reports
UCORE ANNOUNCES AMENDMENT TO WARRANTS
Ucore Rare Metals Inc. has filed an application with the TSX Venture Exchange to extend the term of certain share purchase warrants of the company originally issued on May 13, 2013.
A total of 20,000,000 share purchase warrants were originally issued by the Company pursuant to the closing of the equity offering as originally announced on May 13, 2013. Each share purchase warrant entitled the holder to purchase one common share of the company at a price of $0.35 per common share for a period of 36 months (the "Warrant"). A total of 18,222,000 of these Warrants remain outstanding as of this date.
As a result of market conditions during the term of the Warrants and the capital raising opportunity represented by the Warrants, the Board of Directors of the Company has approved an amendment to the term of the original Warrant so that the term will be extended from May 13, 2016 to December 31, 2016. There will be no change to the exercise price of the warrants. This amendment to the Warrants is subject to the approval of the TSX-V.
Certain of the Warrants are held by parties who are considered "related parties" of the Company. Therefore, the amendment of the warrants constitutes a "related party transaction" as contemplated by Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions and TSX Venture Exchange Policy 5.9 - Protection of Minority Shareholders in Special Transactions. However, the exemptions from formal valuation and minority approval requirements provided for by these guidelines can be relied upon as the fair market value of the Warrants does not exceed 25% of the Company's market capitalization.
A material change report in respect of this related party transaction will be filed by the Company but could not be filed earlier than 21 days prior to the amendment to the Warrants due to the uncertainty of near-term market conditions.
We seek Safe Harbor.