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Standard Uranium closes $2.29M 1st tranche of financing
2023-12-14 11:47 ET - News Release
Mr. Jon Bey reports
STANDARD URANIUM INCREASES PRIVATE PLACEMENT TO $2.5 MILLION AND CLOSES FIRST TRANCHE
Standard Uranium Ltd. has closed the first tranche of its private placement which was previously announced on Nov. 15, 2023. The company issued an aggregate of 10,185,280 units of the company at a price of five cents per unit and 29,825,687 flow-through units of the company at a price of six cents per FT unit for aggregate proceeds of $2,298,805. In connection with closing of the first tranche, the company paid $124,988 in cash and issued 2,084,297 finder's warrants to certain arm's-length brokerage firms in consideration for introducing subscribers to the offering. The finders' warrants are exercisable into one common share in the capital of the company until Dec. 13, 2025, at prices ranging from five cents to nine cents; 1,768,131 at five cents per finders' warrant, 291,667 at six cents per finders' warrant and 24,500 at nine cents per finders' warrant.
Three insiders of the company participated in the offering and acquired an aggregate of 655,280 units. The participation by insiders constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The issuances are exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as they are distributions of securities for cash and the fair market value of the units issued to, and the consideration paid by, the insiders did not exceed 25 per cent of the company's market capitalization. No new insiders were created, nor any change of control occurred, as a result of the first tranche of the offering.
In addition, due to strong investor demand, the company has increased the offering from $2-million to $2.5-million. Each unit will continue to consist of one common share of the company and one-half of one common share purchase warrant. Each FT unit will continue to consist of one common share of the company to be issued as a flow-through share within the meaning of the Income Tax Act (Canada) and one-half of one warrant. Each warrant shall entitle the holder to purchase one common share of the company at a price of nine cents at any time on or before that date which is 24 months after the closing date of the offering. The net proceeds raised from the offering will be used for the exploration of the company's projects in Saskatchewan and for working capital purposes. Proceeds from the sale of FT shares will be used to incur Canadian exploration expenses as defined in Subsection 66.1(6) of the Income Tax Act and flow-through mining expenditures as defined in Subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than Dec. 31, 2023, in the aggregate amount of not less than the total amount of gross proceeds raised from the issuance of FT shares.
A second and final tranche of the offering is expected to close on or before Dec. 20, 2023. Completion of the second tranche of the offering remains subject to approval from the TSX Venture Exchange. All securities issued and issuable under the first tranche of the offering will be subject to a four-month hold period expiring April 14, 2024. Securities issued under any subsequent tranche(s) will be subject to a four-month hold period calculated from their date of official closing.
About Standard Uranium Ltd.
Standard Uranium is a uranium exploration company and emerging project generator poised for discovery in the world's richest uranium district. The company holds interest in over 187,542 acres (75,895 hectares) in the world-class Athabasca basin in Saskatchewan, Canada. Since its establishment, Standard Uranium has focused on the identification, acquisition and exploration of Athabasca-style uranium targets with a view to discovery and future development.