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Almonty Industries Announces USD$5 Million Non-Brokered Private Placement Financing
TORONTO--(BUSINESS WIRE)--Almonty Industries Inc. (“Almonty” or the “Company”) (TSXV: AII) announces that it has entered into a subscription agreement with Mr.
About this update from Almonty Industries Inc.
[{"type":"text","content":"TORONTO--(BUSINESS WIRE)--Almonty Industries Inc. (“Almonty” or the “Company”) (TSXV: AII) announces that it has entered into a subscription agreement with Mr. Lewis Black, Almonty’s Chairman, Chief Executive Officer and President, pursuant to which Mr. Black will subscribe for 21,175,000 common shares (“Common Shares”) of the Company at a price per Common Share of $0.30 for total gross proceeds to the Company of CAD$6,352,500 (USD$5 million) (the “Private Placement”). The Private Placement will close in two tranches. The first tranche will be a subscription for 16,000,000 Common Shares for CAD$4,800,000.00 and is expected to close on or before August 18, 2017, subject to the approval of the TSX Venture Exchange (the “TSXV”). The second tranche, consisting of 5,175,000 Common Shares for CAD$1,552,500, will close upon either: (i) the Company receiving the written consent of shareholders of the Company holding more than 50% of the issued and outstanding Common Shares (excluding any Common Shares beneficially owned, or controlled or directed, directly or indirectly, by Mr. Black) to the creation of Mr. Black as a “Control Person” of the Company for purposes of the TSXV, or (ii) the issuance of such second tranche shares to Mr. Black, when added to the Common Shares then beneficially owned, or controlled or directed, directly or indirectly, by Mr. Black, not resulting in Mr. Black becoming a “Control Person” as defined in the Corporate Finance Manual of the TSXV. Closing of the Private Placement is subject to the conditions to closing enumerated in the subscription agreement, including that Almonty receive approval therefor of the TSXV. All common shares issued pursuant to the Private Placement are subject to a four-month hold period from the date of issuance in accordance with applicable Canadian securities laws. Related Party Transaction Mr. Black, as Almonty’s Chairman, Chief Executive Officer and President, is a related party to Almonty. Accordingly, this Private Placement is deemed to be a “related party transaction” as defined under Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions (“MI 61-101“). Following the closing of the first tranche of the Private Placement, Mr. Black will purchase 16,000,000 Common Shares and, as a result, will beneficially own or control or direct the ...