CNC ABSOLUTELY ANGLO AMERICA PAID @$1.95 PER SHARE TORONTO, March 2, 2023 /CNW/ - Canada Nickel Company Inc. ("Canada Nickel" or the"Company") (TSXV: CNC) (OTCQX: CNIKF) is pleased to announce that it has closed its previously-announced investments from Anglo American for aggregate gross proceeds of C$26,154,294.71 whereby Anglo American subscribed for (i) 12,569,235 common shares in the capital of the Company ("Common Shares") at C$1.95 per Common Share, and (ii) 952,623 Common Shares at C$1.77 per Common Share (collectively, the "Anglo American Investment"). Upon completion of the Anglo American Investment, Anglo American will hold 9.9% of the issued and outstanding Common Shares.
The Company also concurrently closed its "bought deal" prospectus offering (the "Offering") for aggregate gross proceeds of C$18,208,763. Under the Offering, the Company sold the following:
- an aggregate of 7,462,500 Common Shares at a price of C$1.77 per Common Share; and
- an aggregate of 1,748,300 Common Shares issued as "flow-through shares" (the "FT Shares") within the meaning of the Income Tax Act (Canada) at a price of C$2.86 per FT Share.
The Offering was completed pursuant to an underwriting agreement dated February 14, 2023, entered into among the Company and a syndicate of underwriters led by Scotiabank, as lead underwriter and sole bookrunner, and including Red Cloud Securities Inc., Cormark Securities Inc., Echelon Wealth Partners Inc., Haywood Securities Inc., and Research Capital Corporation (collectively, the "Underwriters"). In connection with the Offering the Underwriters received an aggregate cash commission of 6.0% of the gross proceeds of the Offering. No Commission was paid to the Underwriters in respect of the Anglo American Investment.