RE:RE:New Press Release - Almonty Placement of Common Share Units and CDI's raises C$500,000, US$733,333 and A$550,000And here it is...
I and I think most of us assumed the price drop may have been for some kind of raise. Great to see insiders involved!
Almonty receives firm commitments for placement
2023-10-06 19:08 ET - News Release
Mr. Lewis Black reports
ALMONTY PLACEMENT OF COMMON SHARE UNITS AND CDI'S RAISES C$500,000, US$733,333 AND A$550,000
Almonty Industries Inc. has received firm commitments to raise gross proceeds of $500,000 (Canadian), $733,333 (U.S.) and $550,000 (Australian) through the issuance of 3,333,333 placement units and 1,078,433 million placement Chess depository interest units at 45 Canadian per placement unit, 33 U.S. cents per placement unit and 51 Australian cents per CDI unit.
Each placement unit participant will be issued one warrant for every common share issued and one free unlisted option for every one CDI issued, exercisable at 60 Canadian cents, 45 U.S. cents and 69 Australian cents, respectively, with an expiry date of 36 months from the date of closing.
Lewis Black, the company's chief executive officer, will be investing $500,000 (Canadian), and Daniel D'Amato, a director of the company, will be investing $366,666.63 (U.S.) toward the placement units to be issued.
Proceeds from the placement will be applied toward general working capital and offer costs.
The placement units and placement CDIs issued will rank equally with existing CDIs and common shares on issue.
Mr. Black and Mr. D'Amato will be subscribing for units in the private placement. As such, the issuance of units to insiders pursuant to the private placement is considered a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). As such, the company will rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the private placement by insiders will not exceed 25 per cent of the fair market value of the company's market capitalization.
The closing of the placement is subject to receipt of all necessary regulatory approvals, including the acceptance by the Toronto Stock Exchange and the Australian Securities Exchange.
RM Corporate Finance Pty. Ltd. acted as lead manager to the placement and will be paid a total fee of 6 per cent of the gross proceeds raised from the placement CDIs.