The Conversation (0)
Kivalliq Energy Corporation (TSXV:KIV) closed the first tranche of its previously announced C$2.7 million private placement for gross proceeds of C$1,522,820. The company intends to use proceeds of the financing to fund mineral exploration in Saskatchewan and Nunavut.
As quoted in the press release:
Each [Flow Through] Unit consists of one common share issued on a “flow-through basis” (a “FT Share”) pursuant to the Income Tax Act (Canada) and one-half of one non-transferable, non-flow-through common share purchase warrant (a “Warrant”). Each whole Warrant will be exercisable into a non-flow-through common share of Kivalliq (a “Warrant Share”) for a period of 24 months from the Closing Date at an exercise price of $0.18 per Warrant Share.
Kivalliq expects to close the second and final tranche of this financing, by issuing approximately an additional 10,000,000 units (“Units”), at the price of CAD$0.12 per Unit for gross proceeds of CDN$1,200,000, on or about April 28, 2015. Each Unit consists of one common share and one-half of one non-transferable, non-flow-through common share purchase warrant. Each whole warrant will be exercisable into a non-flow-through common share of Kivalliq for a period of 24 months from the closing date at an exercise price of 18 cents per warrant share. The closing is subject to receipt of applicable regulatory approvals.
The Warrants, as part of both the FT Offering and Offering, will be subject to an acceleration clause, whereby, if the weighted average trading price of Kivalliq’s shares on the TSX Venture Exchange (the “Exchange”) is at a price equal to or greater than $0.30 for a period of 20 consecutive trading days, Kivalliq will have the right to accelerate the expiry date of the Warrants. Kivalliq will give written notice to the holders of the Warrants that the Warrants will expire within 30 days of the date of notice to the Warrant holders. Such notice by Kivalliq to the holders of the Warrants may not be given until four months and one day after the Closing Date.
The FT Shares and Warrants issued under this first tranche are subject to TSX-V and securities regulatory legends expiring on August 21, 2015.
Finders’ fees of $43,200.60 and 288,004 warrants were issued to various finders under the Placement. The finders’ warrants have the same terms and conditions as the Warrants issued to the subscribers under the Placement.
Click here to read the Kivalliq Energy Corporation (TSXV:KIV) press release
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