Business
Avidian Gold Announces Completion of Rights Offering
TORONTO, Ontario - TheNewswire - June 26, 2019 - Avidian Gold Corp. ("Avidian" or the "Company") (TSX-V:AVG) is pleased to announce that that it has completed i
About this update from Avidian Gold Corp.
[{"type":"text","content":"TORONTO, Ontario - TheNewswire - June 26, 2019 - Avidian Gold Corp. (\"Avidian\" or the \"Company\") (TSX-V:AVG) is pleased to announce that that it has completed its previously announced rights offering (the \"Rights Offering\"), which expired at 5:00 p.m. EST on June 21, 2019. The Rights Offering raised $581,455.86 in gross proceeds. Avidian offered rights (the \"Rights\") to purchase common shares of the Company (\"Common Shares\") to eligible shareholders of record, at the close of business on the record date of May 27, 2019, on the basis of one Right for each common share of Avidian held. For every three (3) Rights, the holder thereof was entitled to subscribe for one Common Share upon payment of the subscription price of $0.11 per Common Share (the \"Exercise Price\"). No fractional Common Shares were issued. The Company issued an aggregate of 5,285,962 Common Shares at $0.11 per Common Share pursuant to the Rights Offering (3,780,750 Common Shares pursuant to the basic subscription privilege and 1,505,212 Common Shares pursuant to the additional subscription privilege). After completion of the Rights Offering, there were 64,150,961 Common Shares outstanding. Officers and directors of Avidian acquired a total of 1,825,764 Common Shares pursuant to the Rights Offering for a total of 34.5% of the total offering. Avidian intends to use the net proceeds of the Rights Offering for general and administrative expenses, property payments and to fund a trenching program on the Amanita Property which adjoins Kinross's Fort Knox Gold Mine Related Party Transaction The participation in the rights offering by certain \"related parties\" of Avidian, namely, directors and officers of Avidian, constitutes a \"related party transaction\", as such terms are defined by Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is relying on an exemption from the formal valuation requirements of MI 61-101 available on the basis of the securities of the Company not being listed on specified markets, including the Toronto Stock Exchange, the New York Stock Exchange, the American Stock Exchange, the NASDAQ or certain overseas stock exchanges. The Company is also relying on the exemption from minority shareholder approval requirements under MI 61-101 as the fair market value of th...