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AMEX Announces C$9 Million Bought Deal Private Placement, Including a Lead Investment by Eric Sprott
TORONTO, ON / ACCESSWIRE / May 19, 2020 / Amex Exploration Inc. ("Amex" or the "Company") ...
About this update from Amex Exploration Inc.
[{"type":"text","content":"AMEX Announces C$9 Million Bought Deal Private Placement, Including a Lead Investment by Eric SprottTORONTO, ON / ACCESSWIRE / May 19, 2020 / Amex Exploration Inc. (\"Amex\" or the \"Company\") (TSXV:AMX)(FRA:MX0)(OTCQX:AMXEF) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by PI Financial Corp. (collectively, the \"Underwriters\"), pursuant to which the Underwriters have agreed to purchase, on a \"bought deal\" private placement basis, 3,572,000 flow-through units (the \"Flow-Through Units\") of the Company, at a price per Flow-Through Unit of $2.52 (the \"Issue Price\"), for gross proceeds of C$9,001,440 (the \"Offering\"). The Issue Price represents a premium of approximately 58% to the closing price of the Corporation's common shares on the TSX Venture Exchange on May 15, 2020.Each Flow-Through Unit shall be comprised of one common share of the Company issued on a flow-through basis (\"Flow-Through Share\") and one-half of one common share purchase warrant to be issued on a non-flow-through basis (each whole such warrant, a \"Warrant\"). Each Warrant shall entitle the holder thereof to acquire one common share of Amex at a price of $2.10 for a period of 18 months following the closing of the Offering. The Flow-Through Shares will qualify as \"flow-through shares\" (within the meaning of subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Québec)).The Company is pleased to announce that the Underwriters have advised that Eric Sprott has agreed to make a strategic investment in connection with the Offering and, upon completion of the Offering, it is expected that he will own approximately 11.59% of Amex on a non-diluted basis and 16.03% on a partially diluted basis. As Mr. Sprott is an insider of Amex, pursuant to Policy 5.9 of the TSXV and Regulation 61-101 Respecting protection of minority security holders in special transactions, this investment constitutes a \"related party transaction\". The Company expects this related party transaction will be exempt from the minority shareholder approval and a formal valuation requirements as the fair market value of the consideration for the transaction does not exceed 25% of Amex's market capitalization.The Company has also granted the underwriters an option to purchase up to an additional 714,...