Warrants at 75 centsEarly last year they went out of their way to extend the expiry date of these warrants, now due to expire next month. . . 2023-02-17 18:23 ET - News Release
Mr. Lewis Black reports
PROPOSED EXTENSION OF WARRANTS
Almonty Industries Inc. plans to extend, in the aggregate, the term of 700,000 outstanding warrants by one year. The warrants are due to expire on Feb. 19, 2023, and the company will make an application to extend the expiry date of those warrants to Feb. 19, 2024.
During December, 2019, through February, 2020, the company conducted a private placement whereby it closed, in three tranches, 2,047,244 units, which consisted of 2,047,244 shares and 2,047,244 share purchase warrants, exercisable at a price of 75 cents per share with a three-year term. Of the 2,047,244 warrants issued, 1.02 million expired, 327,244 were exercised and 700,000 remain outstanding, which are due to expire on Feb. 19, 2023.
Of the 327,244 warrants exercised, 47,244 were recently exercised by Lewis Black, chief executive officer of the company.
The remaining 700,000 warrants are held by insiders of the company.
The extension of the warrants is subject to Toronto Stock Exchange and shareholder approval.
The amendment of the warrants to insiders may be 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 would 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 number of warrants being amended by insiders will not exceed 25 per cent of the fair market value of the company's market capitalization.