Gensource Provides Update on $10,000,000 Non-Brokered Private Placement
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January 25, 2021 07:00 AM Eastern Standard Time
SASKATOON, Saskatchewan--(BUSINESS WIRE)--Gensource Potash Corporation (“Gensource” or the “Company”) (TSX.V: GSP) is pleased to provide an update on a previously announced in its January 13, 2021 news release proposed best efforts non-brokered private placement for gross proceeds of up to $10,000,000.00 (the “Offering”). As previously announced, the Offering will consist of the sale of up to 55,555,556 Common Shares of the Company (”Common Shares”) at a price of $0.18 per Common Share.
It was previously anticipated that the Offering will close on or about January 25, 2021. To accommodate investors, the Company wishes to extend the period within which the Offering will be complete and the Company now expects that the Offering will close on or about the second week of February.
The Company intends to use the net proceeds from the sale of the Offering to advance engineering and construction activities at the Company’s Tugaske Project and for general corporate and working capital purposes. The Offering will take place by way of a private placement to qualified investors in such provinces of Canada as the Company may designate, and otherwise in those jurisdictions where the Offering can lawfully be made. The securities to be issued pursuant to the Offering will be subject to a statutory four month and one day hold period from the Closing Date (as defined herein).
The Offering is subject to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals including the approval of the TSX Venture Exchange. In consideration for their services, certain persons (each, a “Finder”) may receive from the Corporation on Closing, a cash commission equal to 6.0% of the gross proceeds of the Common Shares sold and compensation warrants to purchase Common Shares equal to 6.0% of the total number of Common Shares sold, exercisable for 36 months from the closing date at $0.18 per Common Share. The securities issued pursuant to the Offering will be subject to the customary four months and a day holding period under applicable Canadian securities laws.