Global Cobalt Extends Private Placement to August; Settles Debt with Shares

Global Cobalt Corp. (TSXV:GCO) announced that it has extended the closing of the previously announced private placement by 30 days to August 21. The company also announced that it has entered into settlement agreements with creditors of the company that will see Global Cobalt issue common shares at a price of $0.05 per common share in full and final settlement of the amounts owing to creditors.
As quoted in the press release:

The Company has already closed on an initial first tranche on May 11th, 2015 that consisted of the issuance of a total of 2,990,000 Units at a price of $0.05 per Unit to four placees, for gross proceeds of $149,500.
As announced, the non-brokered private placement consists of the Company issuing up to 5,000,000 Units at a price of $0.05 per Unit. Each Unit consists of one common share of the Company (a “Share”) and one common share purchase warrant (a “Warrant”) entitling the holder to acquire an additional common share of the Company (a “Warrant Share”) for a period of 24 months following the Closing Date at an exercise price of $0.07 per Warrant Share.
In addition, the Company is pleased to announce that it has entered into settlement agreements (the “Settlement Agreements”) with creditors of the company whereby Global Cobalt would issue common shares of the company at a deemed price of $0.05 per common share in full and final settlement of the amounts owing to such creditors (the “Shares for Debt Settlement”). Pursuant to the Settlement Agreements, $277,546.58 would be settled and a total of 5,550,932 Shares would be issued to the creditors.
The board and management of Global Cobalt believe that the proposed Shares for Debt Settlement is in the best interests of Global Cobalt because in addition to preserving cash for the announced Plan of Arrangement Transaction, the creditors have agreed to settle the debts owed to them at a price of $0.05 per share, a premium to the closing market price of the company’s common shares on the TSX Venture Exchange on July 21st, 2015.

Click here to read the full Global Cobalt Corp. (TSXV:GCO) press release.