Stroud Board Approves Rollback & Plans Financing
2019-08-23 18:27 AT - News Release
Mr. Mirsad Jakubovic reports
STROUD RESOURCES LTD. ANNOUNCES SHARE CONSOLIDATION AND PRIVATE PLACEMENT
Stroud Resources Ltd.'s board of directors has passed a resolution to proceed with a consolidation of common shares of the company on the basis of one postconsolidated share for 10 preconsolidated shares. The consolidation was approved by the company's shareholders at the annual and special meeting held on Nov. 30, 2018. The transaction is subject to TSX Venture Exchange approval.
Currently, a total of 196,440,650 common shares are issued and outstanding. Accordingly, upon the consolidation becoming effective, a total of approximately 19,644,065 common shares will be issued and outstanding. The company's new ISIN is CA8634433053 and its new Cusip number is No. 863443305. The effective date of the consolidation will be determined by the TSX Venture Exchange.
TSX Trust Company will mail letters of transmittal to the shareholders providing instructions on exchanging preconsolidation share certificates for postconsolidation share certificates. Shareholders are encouraged to send their share certificates, together with their letter of transmittal, to the transfer agent in accordance with the instructions in the letter of transmittal.
The private placement
The company proposes to issue, on a postconsolidated basis, up to 13,333,333 units at 15 cents per unit for gross proceeds of up to $2-million. Each unit will comprise one common share and one-third of one common share purchase warrant, with each whole warrant exercisable into one common share at a price of 15 cents for a period of one year from closing.
All securities will be subject to a four-month hold period from the closing date. The private placement is subject to the approval of the TSX-V. Eligible finders are entitled to a cash commission equal to 7 per cent of proceeds from the sale of units sourced by the finders. In addition, the company shall issue to the finders warrants exercisable at any time from the closing date to the day prior to the date that is 24 months following the closing date to acquire, in aggregate, that number of common shares of the company which is equal to 7 per cent of the aggregate number of units sourced by the finders issued pursuant to the offering at an exercise price equal to 20 cents per finder's warrant.
Proceeds raised through the issue of units will be to advance the company's exploration properties located in Mexico and for general working capital purposes.
About Stroud Resources Ltd.
Stroud Resources is a TSX-V-listed company focused on the exploration and development of its Santo Domingo epithermal silver-gold project in central Mexico.
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