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Azincourt Energy Closes $5.1M Private Placement and Announces 2.5-to-1 Share Consolidation
VANCOUVER, British Columbia, March 31, 2022 (GLOBE NEWSWIRE) -- AZINCOURT ENERGY CORP. (“Azincourt” or the “Company”) (TSX.V: AAZ, OTCQB: AZURF, FSE: A0U2) is p
About this update from Azincourt Energy Corp
[{"type":"text","content":" VANCOUVER, British Columbia, March 31, 2022 (GLOBE NEWSWIRE) -- AZINCOURT ENERGY CORP. (“Azincourt” or the “Company”) (TSX.V: AAZ, OTCQB: AZURF, FSE: A0U2) is pleased to announce that it has closed a non-brokered private placement with certain institutional investors for proceeds of C$5,101,000 (the “Offering”). In connection with closing of the Offering, the Company has issued 63,762,500 flow-through units (each, a “FT Unit”). Each FT Unit was offered at a price of $0.08. Each FT Unit consists of one common share and one share purchase warrant entitling the holder to acquire an additional common share of the Company at a price of $0.10 until March 31, 2024. The gross proceeds from the Offering will be used for Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)), which will be renounced with an effective date of no later than December 31, 2022, to the purchasers of the FT Units. If the qualifying expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each subscriber of FT Units for any additional taxes payable by such subscriber as a result of the Company's failure to renounce the qualifying expenditures. It is expected that funds from the Offering will be applied directly to the current drill program at the East Preston uranium project, and the upcoming initial drill program at the Hatchet Lake uranium project, both located in Athabasca basin, Saskatchewan, Canada. All securities issuable in connection with the Offering are subject to a statutory hold period, in accordance with applicable securities laws, until August 1, 2022. In connection with closing of the Offering, the Company paid finders’ fees totaling $320,000 and issued 1,025,000 finder’s shares and 5,025,000 finders’ warrants. Each finders’ warrant is exercisable into one common share of the Company at a price of $0.10 until March 31, 2024. Share Consolidation The Company also announces that its board of directors has approved a restructuring of the Company though a consolidation of its outstanding common share capital (the “Share Consolidation”) on the basis of one (1) post-Share Consolidation common share for every two and one-half (2.5) pre-Share Consolidation common shares outstanding. Assuming completion of the Share Consolidation on a 2.5-for-1 bas...