Apex Resources closes $375,000 private placement
2020-07-27 17:51 ET - News Release
Mr. Arthur Troup reports
APEX RESOURCES ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT
Apex Resources Inc., subject to the approval of the TSX Venture Exchange, has closed a non-brokered private placement issuing a total of 5,769,231 units at 6.5 cents per unit for total gross proceeds of $375,000. Each unit is composed of one common share in the capital of the company and one non-transferable share purchase warrant. The warrants attached to the units are exercisable into one share of the company for a period of 12 months from the date of issue at an exercise price of 14 cents per share. The warrants are subject to an acceleration clause whereby if the volume weighted average closing price of the shares on the exchange is 20 cents or more for 21 consecutive trading days at any time subsequent to the expiry of six months from the date of issuance of the warrants, then the company will earn the right by providing notice to the warrant holders, to accelerate the expiry date of the warrants to that date which is 30 days from the date of the acceleration notice.
The company paid finders' fees of $11,154 and 171,600 finders' warrants to Leede Jones Gable Inc. and PI Financial Corp. The finders' warrants are exercisable under the same terms as the private placement warrants. All securities issued will be subject to a four-month hold period pursuant to securities laws in Canada. Net proceeds from the private placement will be used for an expanded drill program on the Ore Hill property and for general working capital. Arthur G. Troup, president, chief executive officer and a director of the company, subscribed for 500,000 units. As a result, the private placement is a related party transaction (as defined under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions). The company relied upon Section 5.5(b) issuer not listed on specified markets, and 5.7(a) fair market value not more than $2.5-million (calculated in accordance with MI 61-101).
About Apex Resources Inc.