Ether Capital Announces Private Placement

Ether Capital (NEO:ETHC) has announced its intentions to complete a non-brokered private placement of units for gross proceeds of roughly C$2 million.

As quoted in the press release:

The offer price (“Offer Price”) of each Unit will be equal to the net asset value (“NAV”) of the Company on the pricing date (“Pricing Date”) plus a pro-rata allocation of the expenses of the Offering. The NAV will be calculated on the Pricing Date, which is expected to be on January 18, 2019. For reference purposes, the Offer Price on January 7, 2019 would have been $0.59 per Unit based on a market price of Ether of US$152.

Each Unit will be comprised of one common share of the Company (a “Common Share”) and one common share purchase warrant of the Company (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one Common Share at an exercise price equal to 120% of the Offer Price, rounded to two decimal places, for a period of 12 months from the closing date of the Offering. Subject to customary closing conditions, the Offering is expected to close on or about January 24, 2019 but remains subject to customary closing conditions including the consent of the Aequitas NEO Exchange (the “NEO Exchange”). The Company will use reasonable best efforts to list the Warrants on the NEO Exchange including satisfying the relevant listing requirements.

The Company expects that certain insiders of the Company will subscribe for not less than an aggregate of $500,000 of Units, which includes a $300,000 subscription from Executive Chairman and Co-Chief Investment Officer Som Seif. As such, the Offering will constitute a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). The Company expects to rely on exemptions from the formal valuation and minority approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the related party participation in the Offering. Details of amounts subscribed for by related parties will be disclosed once the terms of the Offering are finalized.

Click here to read the full press release.