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Energizer Resources Inc. (TSX:EGZ,OTCBB:ENZR) announced the closing of its private placement for aggregate gross proceeds of approximately C$2.5 million. The private placement consisted of 20,550,998 special warrants at a price of C$0.12 per Special Warrant.
Each Special Warrant entitles the holder to acquire, for no additional consideration, one unit (a “Unit”) of Energizer, with each Unit comprised of one common share (a “Common Share”) of Energizer and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”) of Energizer. Each Warrant entitles the holder thereof to purchase one Common Share of Energizer (a “Warrant Share”) at a price of US$0.14 per Common Share until May 4, 2018.
The Special Warrants will be deemed to be exercised without payment of additional consideration or further action, on the earlier of: (i) the third business day following the day upon which the Company obtains a receipt for a final prospectus (the “Final Prospectus”) qualifying the underlying Common Shares, Warrants, Warrant Shares (collectively the “Underlying Securities”) from the securities regulatory authority in each of the provinces of British Columbia, Ontario, Alberta and further provided that the Company has filed (and has in effect) a resale registration statement (the “Registration Statement”) in the United States with the Securities and Exchange Commission relating to the Underlying Securities; and (ii) November 4, 2015.
The Company will use its commercially reasonable efforts to (i) file and obtain a receipt for the Final Prospectus and (ii) file (and have in effect) the Registration Statement as soon as reasonably practicable.
If the Company fails to obtain a final receipt for the Final Prospectus and file (and have in effect) the Registration Statement by August 4, 2015, the holders of Special Warrants will be entitled to receive 1.1 Common Shares (instead of one Common Share) and 0.55 of a Warrant (instead of 0.5 of a Warrant) on the deemed exercise of the Special Warrants.
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