TORONTO, March 01, 2018 (GLOBE NEWSWIRE) -- Cobalt 27 Capital Corp. (“Cobalt 27” or the “Company”) (TSXV:KBLT)(FRA:27O) announced today that the Company has agreed on terms for a strategic private placement of common shares of the Company (“Common Shares”) with a group of investors. Under the agreed terms, the Company will issue up to 11.4 million Common Shares at a price of $11.40 per Common Share for aggregate gross proceeds to the Company of up to $130 million (the “Offering”). The Offering is being conducted by a syndicate of agents co-led by Credit Suisse Securities (USA) LLC and TD Securities Inc., and including Numis Securities Limited. The Common Shares to be issued under the Offering will not be qualified by a prospectus, and accordingly the Common Shares will be subject to customary restrictions on transfer required pursuant to applicable securities laws (including a customary four month hold period in Canada).
The net proceeds of the Offering will be used by the Company to fund the acquisition of cobalt-related streams and royalties and general corporate purposes. “At a time when we see the acceleration of the adoption of the electric vehicle and tremendous opportunity to capitalize on the structural changes underway in the energy and automobile industries, the proceeds of this private placement will strengthen Cobalt 27’s balance sheet and liquidity, and better positions us to execute the many opportunities currently available to the Company,” commented Anthony Milewski, Chairman of Cobalt 27.
“We are very pleased to welcome a number of new cornerstone investors to the Cobalt 27 story through this offering. In addition, the continued support we have received from several existing shareholders is very gratifying and speaks to the strong shareholder following we have developed since our IPO in June of last year,” further stated Mr. Milewski.
Completion of the Offering is subject to a number of conditions, including, without limitation, the finalization of definitive subscription documentation and receipt of all regulatory approvals before closing, including the conditional approval of the TSX Venture Exchange. The Offering is expected to close on or about March 9, 2018.