Encanto Potash Increases Private Placement Due to Excess Demand

Encanto Potash Corp. (TSXV:EPO) announced that due to excess demand, the private placement has been increased to 17 million units. Each unit consists of one common share and one share purchase warrant entitling the holder to purchase one common share at $0.17 for a period of 12 months from the close date.

As quoted in the press release:

Marquest Capital Markets and Secutor Capital Management Corporation (collectively, the “Finders”) have agreed to act as finders in connection with the Private Placement.  In consideration for the services rendered by the Finders in connection with the Private Placement, the Finders will be paid 5 percent of the gross proceeds.

The Company also advises that as part of the Private Placement, insiders and significant existing shareholders (the “Sellers”) sold 9 million common shares to an institutional investor and the Sellers will be subscribing for a minimum of 9 million units in the Private Placement.

The Company confirms that the Private Placement has been fully allocated and is targeting closing at the end of next week, subject to the acceptance for filing of the TSX Venture Exchange.  The securities issued by the Company in connection with this Private Placement are subject to a 4-month “hold period” as prescribed by the TSX Venture Exchange and applicable securities laws.

Click here to read the full Encanto Potash Corp. (TSXV:EPO) press release.