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TORONTO, ON / ACCESSWIRE / December 15, 2021 / Gratomic Inc. ("Gratomic", "GRAT" or the "Company") (TSXV:GRAT)(OTCQX:CBULF)(Frankfurt:CB82) announces that, due to significant demand, the Company has increased the size of the previously announced non-brokered private placement offering from $20,020,000 to $27,020,000. The increased offering will consist of up to 19,300,000 working capital units ("WC Units") priced at $1.40 per WC Unit for gross proceeds of up to $27,020,000 (the "Offering").
Each WC Unit consists of one (1) common share and one quarter (0.25) of a common share purchase warrant. Each full warrant (a "WC Warrant") entitles the holder to purchase one (1) common share (a "WC Warrant Share") at a price of $1.45 per WC Warrant Share until the date which is six (6) months following the Closing of the Offering.
Eligible Finders may receive 5% of the value of proceeds of the sale of WC Units in cash. The Company has agreed to pay First Republic Capital Corporation ("First Republic") a corporate finance fee equal to 2% of the gross proceeds of the Offering as consideration for waiving its right of first refusal in respect of the Offering. First Republic will have the right to place up to $5,000,000 of the Offering with its clients and will receive an additional cash fee of 3% in respect of any WC Units placed by First Republic.
Proceeds from the Offering will be used for operating capital for the Company's Aukam Project ($17 million), exploration for the Company's Capim Grosso Property ($6 million) and general working capital ($5 million). The Offering is subject to TSX Venture Exchange approval. The securities issued will be subject to a four-month and one day hold period.
Insiders of the Company may subscribe for up to 10% of the WC Units under the Offering. The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contained in sections 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company which will be issued to the insiders does not exceed 25% of its market capitalization.