Comstock to roll back shares 1 for 5, raise $300,000
2020-02-07 06:57 MT - News Release
Mr. Steven Goldman reports
COMSTOCK ANNOUNCES NON-BROKERED FINANCING AND PROPOSED SHARE CONSOLIDATION
Comstock Metals Ltd. has proposed a one-for-five share consolidation and a non-brokered private placement of up to three million units priced, on a postconsolidated basis, at 10 cents per unit for gross proceeds of up to $300,000.
Private placement
The units to be issued under the proposed offering will consist of one common share of the company and one common share purchase warrant. The warrants will be exercisable for a period of 36 months from closing at a postconsolidated exercise price of 12 cents for the first 12 months following closing and a postconsolidated exercise price of 15 cents for the final 24 months of their term. Certain related parties of the company may purchase units under the offering.
Share consolidation
The board of directors of Comstock believes that further equity financing is required in order for the company to finance its current working capital requirements and for future business purposes. Given the current price of Comstock's common shares, a consolidation of such shares is required under TSX Venture Exchange policies. The board of directors believes that a consolidation on the basis of five old shares of Comstock for one new share of Comstock will achieve such objectives.
The consolidation will be effective upon receipt of all the customary regulatory approvals. A further press release will be issued once such approvals are provided and the effective date of the consolidation is known.
About Comstock Metals Ltd.
Comstock Metals is a diversified mineral exploration company advancing its wholly owned projects located in North America and holds several equity positions in companies with large mineral resources.
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