Firefox Gold closes $274,500 final tranche of financing
2019-09-17 08:45 ET - News Release
Mr. Carl Lofberg reports
FIREFOX GOLD CLOSES NON-BROKERED PRIVATE PLACEMENT
Effective Sept. 16, 2019, subject to regulatory acceptance, Firefox Gold Corp. has completed the second and final tranche of a non-brokered private placement. In both tranches together the company raised total gross proceeds of $570,500 by issuing 3,803,333 units of the Company. The second tranche was completed by issuing 1,830,000 units of the Company at a purchase price of $0.15 per unit for gross proceeds of $274,500. Each unit consists of one common share of the Company and one non-transferrable common share purchase warrant. Each warrant shall be exercisable into one additional common share of the Company for a period of two years from the closing of the offering at an exercise price of $0.20.
Finders fees of $3,780 are payable in cash to parties at arm's length to the Company on a portion of the private placement. In addition, 22,800 non-transferable Broker Warrants are being issued to those same parties. Each Broker Warrant shall be exercisable into one common share of the Company for a period of two years from the closing of the offering at an exercise price of $0.20.
Two related parties participated in the first tranche of the transaction, having subscribed for a total of 440,000 units for gross proceeds of $66,000. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the offering by insiders does not exceed 25 per cent of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the offering, which the Company deems reasonable in the circumstances in order to complete the offering in an expeditious manner.
After this financing, FireFox has 40.7 million shares outstanding, 15.6 million warrants, and 3.5 million stock options issued.
The shares issued pursuant to the offering will be subject to a statutory hold period of four months plus one day from the date of issuance, in accordance with applicable securities legislation. Finders' fees may be payable to qualified finders in accordance with applicable regulations. All currency figures cited in this news release are in Canadian dollars.
