Business
Black Iron Closes Upsized and Fully Subscribed Final Tranche of Private Placement
Toronto, Ontario--(Newsfile Corp. - April 5, 2019) - Black Iron Inc. (TSX: BKI) (OTC Pink: BKI...
About this update from Black Iron Inc.
[{"type":"text","content":"Black Iron Closes Upsized and Fully Subscribed Final Tranche of Private PlacementToronto, Ontario--(Newsfile Corp. - April 5, 2019) - Black Iron Inc. (TSX: BKI) (OTC Pink: BKIRF) (FSE: BIN) (\"Black Iron\" or the \"Company\"), an iron ore development project ranked by CRU as the lowest cost undeveloped pellet feed project globally, announces that it has upsized and closed the second and final tranche of its previously announced non-brokered private placement (the \"Second Tranche\") of units of the Company (the \"Offering\"). Pursuant to the Second Tranche, the Company issued a total of 9,043,950 units (the \"Units\") at a price of $0.06 per Unit for gross proceeds of $542,637. Combined with the closing of the first tranche (the \"First Tranche\") on March 29, 2019, the Company has issued a total of 26,552,390 units for gross proceeds of $1,593,143. The Company upsized the Offering from $1,500,000 to accommodate investor interest. Interest to participate in the Offering was extremely strong and Black Iron management asks that investors who were unable to receive an allocation of the Offering, or their target allocation, purchase Black Iron shares in the market. A new strategic investor participated in this Offering that brings value well beyond the cash invested at this time. This investor has expressed an interest to potentially participate in construction financing and may also be able to assist in negotiations with other strategic parties that could make an investment to construct Black Iron's Shymanivske project.Certain insiders of the Company, including members of senior management and the board of directors, have subscribed for Units pursuant to the first tranche of the Offering (the \"Insider Participation\"). The Insider Participation is considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The Insider Participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101. In the Second Tranche, each Unit consists of one common share of the Company (each a \"Common Share\") and one-half of one common share purchase warrant (each whole warrant, a \"Warrant\") entitling the holder to acquire a Common Share at a price of $0.09 for a period of three years from the date hereof. In the event that the Common Shares of the Company ...