Business
Benton Closes $217,628 Flow-Through Private Placement Financing
Thunder Bay, Ontario--(Newsfile Corp. - December 27, 2019) - Benton Resources Inc. (TSXV: BEX)...
About this update from Benton Resources, Inc.
[{"type":"text","content":"Benton Closes $217,628 Flow-Through Private Placement FinancingThunder Bay, Ontario--(Newsfile Corp. - December 27, 2019) - Benton Resources Inc. (TSXV: BEX) ('Benton' or 'the Company') is pleased to announce that the Company has closed its previously announced financing (see PR dated December 11, 2019). The Company has raised aggregate proceeds of $217,627.50 by issuing 2,901,700 flow-through Units (FT Units) at $0.075 per FT Unit, each FT Unit consisting of one flow-through common share and one-half of one common share purchase warrant, each warrant (a \"Warrant\") being exercisable for one common share of the Company at $0.15 for a period 36 months from the date of issuance of such Warrants. All securities issued pursuant to this financing will be subject to a four-month hold period. Cash finders' fees of $14,000 were paid in connection with this financing as well as the issuance of 186,669 finders' warrants exercisable at $0.075 for a period of 18 months from the date of issuance.The Placement was effected with an insider of the Company subscribing for 135,000 FT Units for aggregate subscription proceeds of $10,125, that portion of the financing a \"related party transaction\" as such term is defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is relying on exemptions from the formal valuation and minority approval requirements set out in MI 61- 101. The Company is exempt from the formal valuation requirement of MI 61-101 under sections 5.5(a) and (b) of MI 61-101 in respect of the transaction as the fair market value of the transaction, insofar as it involves the interested party, is not more than the 25% of the Company's market capitalization. Additionally, the Company is exempt from minority shareholder approval under sections 5.7(1)(a) and (b) of MI 61-101 as, in addition to the foregoing, (i) neither the fair market value of the Units nor the consideration received in respect thereof from interested party exceeds $2,500,000, (ii) the Company has one or more independent directors who are not employees of the Company, and (iii) all of the independent directors have approved the transaction. Material change reports were not filed 21 days prior to the closing of the financing because insider participation had not been established at the ...