Abzu Gold Ltd. (TSXV:ABS) announced the closure of a strategic investment of 22,727,273 units priced at 11 cents per unit with Stonehouse Construction Pte. Ltd. and four of Stonehouse’s shareholders. Proceeds from the transaction totaled $2.5 million.
As quoted in the press release:
Each Unit is comprised of one common share (a â€śShareâ€ť) of the Company and one common share purchase warrant (a â€śWarrantâ€ť) of the Company. Each Warrant is exercisable into an additional Share for a period of 12 months fromÂ closing of the Investment at an exercise price of $0.125 per Share.
Pursuant to the terms of the definitive share purchase agreement between the Company and Stonehouse, provided the Strategic Investors hold 10% or more of the issued and outstanding Shares, Stonehouse will be entitled to appoint from time to time directors of the Company up to a maximum of 40% of the number of directors of the Company at any time.
Accordingly, in connection with the Investment, the Company has appointed Messrs. Eric Wardle and David Savage to the Companyâ€™s board of directors.