Placement closed
TORONTO, July 30, 2020 (GLOBE NEWSWIRE) -- Stroud Resources Ltd. (TSXV-SDR) (“Stroud” or “Company”) is pleased to announce that it has closed a non-brokered private placement of gross proceeds of $3,000,000.
The Company issued 7,500,000 units (each a “Unit”) at $0.40 per Unit for proceeds of $3,000,000. Each Unit consists of one common share of the Company (a “Common Share”) and one-half common share purchase warrant (a “Warrant”). Each whole Warrant is exercisable to purchase one Common Share at an exercise price of $0.60 until July 30, 2021.
Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired the 7,500,000 Units pursuant to the Private Placement. Prior to the Private Placement, Mr. Sprott owned 13,333,333 Common Shares of the Company and 4,444,444 Warrants. As a result of the Private Placement, Mr. Sprott beneficially owns and controls 20,833,333 Common Shares of the Company and 8,194,444 Warrants representing approximately 47.0% of the issued and outstanding Common Shares of Stroud on a non-diluted basis and approximately 55.3% on a partially diluted basis. The Units were acquired by Mr. Sprott, through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.....