Toronto, Ontario--(Newsfile Corp. - May 12, 2020) - Majesta Minerals Inc. ("Majesta" or the "Company") is pleased to announce that it has closed a non-brokered private placement offering (the "Offering") raising a total of $150,000 from the issuance of 1,875,000 units (the "Units") at the price of $0.08 per Unit. Each Unit consists of one common share ("Common Share") and one warrant (a "Warrant"). Each Warrant is exercisable to acquire one Common Share at a price of $0.10 for a period of two years after the date of issuance.
Net proceeds of the Offering will be used for general corporate and working capital purposes. All securities issued pursuant to the Offering are subject to a statutory hold period ending September 12, 2020. The Company paid a finder's fee of 78,125 Common Shares and 78,125 Warrants, which is equal to 5% of the gross proceeds raised through the finder under the Offering.
A director of the Company purchased 93,750 Units pursuant to the Offering (the "Related Party"), which constituted a "related party transaction" as such term is defined by Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company was exempt from the MI 61-101 valuation and minority approval requirements for related party transaction in connection with the Offering because the Company was not listed on a stock exchange specified in section 5.5(b) of MI 61-101, and neither the fair market value of the Units purchased by the Related Party, nor the proceeds to be received by the Company in respect of the Related Party participation in the Offering, exceeded $2,500,000.
The securities offered pursuant to the Offering have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
For further information please contact:
Michael Stein
Chief Executive Officer
Tel: 416-410-7722
/Not for distribution to U.S. news wire services or dissemination in the United States/
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