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Pure Energy Minerals (TSXV:PE,FWB:A111EG,OTC:HMGLF) announced a warrant exercise incentive whereby one-half of one incentive warrant will be granted to placement warrant holders for each placement warrant exercised within a 10-day period beginning on June 15, 2015, and ending on June 24, 2015. Pure Energy aims to raise additional capital without further diluting current shareholders.
As quoted in the press release:
Further to Pure Energy Minerals Ltd.’s recent private placement of units priced at 10 cents, each composed of one common share and one common share purchase warrant exercisable at a price of 15 cents per warrant, which closed in tranches in May, June and September of 2014, Pure Energy Minerals has determined it is in the best interest of shareholders to raise additional capital to finance the aggressive development of its Clayton Valley lithium brine project. The company does not, however, wish to dilute its current shareholders any further than is absolutely necessary. Accordingly, the company will issue warrants to current placement warrantholders in consideration of the early exercise of outstanding placement warrants.
Under the incentive program, one-half of one incentive warrant will be granted to placement warrantholders for each placement warrant exercised within a 10-day period beginning on June 15, 2015, and ending on June 24, 2015. Each whole incentive warrant will be exercisable on or before Dec. 31, 2016, at a price per incentive warrant of 24 cents. The company will limit the number of incentive warrants issuable under the incentive program to 3,333,333 whole incentive warrants, issuable on the exercise of 6,666,666 placement warrants for gross proceeds of $1-million. To ensure the fairness of the incentive program, placement warrantholders who are either insiders of the company or members of the pro group, as that term is defined in TSX Venture Exchange policy, will only be eligible to participate in the incentive program for the last three days of the incentive period, and only to the extent that incentive warrants remain available for issuance.
All holders of placement warrants who exercised placement warrants within the past six months have consented in writing to the incentive program.
Click here to read the Pure Energy Minerals (TSXV:PE,FWB:A111EG,OTC:HMGLF) press release
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