Business
Canagold Resources Announces Closing of Fully Subscribed Rights Offering
VANCOUVER, British Columbia / Dec 16, 2022 / Business Wire / Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA) (the “Company” or “Canagold”), i
About this update from Canagold Resources Ltd
[{"type":"text","content":"VANCOUVER, British Columbia / Dec 16, 2022 / Business Wire / Canagold Resources Ltd. (TSX: CCM, OTC-QB: CRCUF, Frankfurt: CANA) (the “Company” or “Canagold”), is pleased to announce the Company has closed its previously announced rights offering which expired on December 9, 2022 (the “Rights Offering”). At closing, Canagold issued 25,277,221 common shares of the Company (the “Shares”) to rightsholders at a price of $0.175 per Share for total gross proceeds of $4,423,514 and an additional 20,352,577 Shares to Sun Valley Investments AG (“Sun Valley”) pursuant to Canagold’s Rights Offering Standby Guaranty Agreement, dated October 28, 2022 with Sun Valley. The Company received subscriptions from existing shareholders for 21,249,413 Shares pursuant to the basic subscription privilege and 4,027,808 Shares pursuant to the additional subscription privilege, representing a 55% subscription rate. “I’m very pleased with the strength of support that we’ve received from our shareholders in respect of this rights offering,” said Catalin Kilofliski, Canagold’s CEO. “This demonstrates a significant vote of confidence in Canagold’s new management team, our strategy and the plans we have in place to advance New Polaris through feasibility and permitting.” In addition, Canagold has issued 20,352,577 Shares to Sun Valley, which are additional to the Shares acquired by Sun Valley under its basic subscription privilege and the additional subscription privilege. From the gross proceeds to be received from Sun Valley totalling $3,561,701, the Company has deducted a total of $2,546,336 to pay back and terminate the $2.5M loan provided by Sun Valley in August 2022 plus accrued interest, and a total of $178,085 in fees pursuant to the Guaranty Agreement. Prior to the rights and standby guarantee exercise, Sun Valley held 22,990,371 shares in the capital of Canagold, which are equal to 25.19% of the issued and outstanding shares of the Company. Following the rights and standby guarantee exercise, Sun Valley holds 54,838,133 shares in the capital of the Company, which are equal to 40.06% of the issued and outstanding shares of Canagold. The total number of issued and outstanding common shares of the Company upon completion of the Rights Offering will be 136,889,394. To the knowledge of Canagold, after reasonable inquiry, directors, officers, employees and ...