News - $50,000 Private Placement 2018-12-04 18:40 ET - News Release
Mr. Marc Levy reports
AVARONE METALS INC. PROVIDES CORPORATE UPDATE
Avarone Metals Inc. has closed a non-brokered private placement, issuing a total of one million units at five cents per unit for gross proceeds of $50,000. Each unit consisted of one common share and one common share purchase warrant, whereby each warrant entitles the holder to purchase one additional common share of the company on or before Nov. 28, 2023, at an exercise price of five cents per share.
Proceeds from the private placement will be used for general working capital and corporate purposes.
The securities distributed pursuant to the private placement are subject to a statutory hold period of four months that expires on March 29, 2019. No fees were paid in connection to this private placement.
As a subscriber to the offering, Marc Levy, a director and officer of the company, acquired indirectly, 500,000 units. The participation by an insider in the private placement is considered to be a related-party transaction as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued, nor the consideration being paid, exceeds 25 per cent of Avarone's market capitalization.
The company also announces the results of its annual general meeting of shareholders held Nov. 29, 2018. The shareholders of the company elected Mr. Levy, Peter Born and Peter Lee as directors of the company for the coming year.
The company has accepted the resignation of Janet Francis as a director, effective Nov. 29, 2018. The board wishes to express its gratitude to Ms. Francis for her contributions to the company and wishes her well with her future endeavours.
The board of directors has appointed the following officers of the company: Mr. Levy, president and chief executive officer, Kulwant Sandher, chief financial officer, and Max Pinsky, corporate secretary.
The board of directors and management of the company would like to thank all the shareholders for their support and confidence.