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NovX21 Inc. (TSXV:NOV) announced it is undertaking a private placement for a minimum of 1,000 units and a maximum of 2,500 units of the company at a price of $1,000 resulting in maximum gross proceeds of $2,5000,000. The net proceed will be used to complete the financing of a new commercial plant for the recovery of precious metals in Thetford Mines, Quebec.
As quoted in the press release:
Each Unit is comprised of a four year 8 percent unsecured convertible subordinated debenture in the principal amount of $1,000 and 5,000 share purchase warrants of the Company.
Each Debenture is convertible at the option of the holder into common shares of NOV at any time starting after the closing date and prior to the close of business on the last business day prior to the maturity date at a conversion price of $0.10 per common share for the first and second year, $0.11 for the third year, and $0.121 for the fourth year, being at a rate of approximately 10,000 common shares for the first and second year, 9,090.9 common shares for the third, and 8,264.46 common shares for the fourth year, per $1,000 principal amount of debentures, subject to adjustment in certain circumstances. Each warrant allows the holder to purchase one common share of the company at $0.20 for a period of 36 months from the closing date.
The closing date of the offering is expected to be on or about May 7, 2015. The offering is subject to several conditions including regulatory approvals including that of the TSX Venture Exchange.
Jack Lifton, consultant for NovX21, commented:
It was the first time in my long career as a researcher and executive in the OEM automotive supply industry that I encountered an industrial-scale non-smelting process for extracting precious metals of the platinum group without equipment corrosion or chlorine leaks. I look forward to meeting investors and expressing my confidence in the NovX21 technology and its multiple commercial applications.
Click here to read the NovX21 Inc. (TSXV:NOV) press release