Each Warrant entitles the holder thereof to acquire one Common Share at a price of $0.09375 per Common Share for a period of 60 months from the date of issuance. The Company has been granted a 30-day extension to close a subsequent tranche of the Offering.
All securities issued pursuant to the Offering will be subject to a hold period of four months plus a day from the date of issuance and the resale rules of applicable securities legislation. The proceeds from the Offering will be used by the Company for corporate and general working capital purposes.
“Completion of this Offering is a significant milestone for the Company. We are appreciative of the support and confidence shown by current and new shareholders alike, as Canada Carbon embarks on an effort to expand the number of applications for which its graphite is qualified. The proceeds from this Offering will allow the Company to advance its strategic repositioning through completion of a significant product qualification and metallurgical testing program. Canada Carbon is poised to deliver exceptional value to shareholders as we demonstrate the full potential of the Company’s efforts to bring the Miller and Asbury graphite deposits into production.”, said Ellerton Castor, Chief Executive Officer and a director of the Company.
In connection with the Offering, the Company paid a finder’s fee to eligible arm’s length parties, consisting of a cash fee to 6% of the gross proceeds raised under the Offering and the issuance of common share purchase warrants (each, a “Broker Warrant”) equal in number to 6% of the Units sold under the Offering. Each Broker Warrant entitles the holder to acquire one Common Share at a price of $0.09375 per Common Share for a period of 36 months from the date of issuance.
This news does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.