Business
Canarc Closes CAD$5.2 Million Second Tranche of CAD$8.4 Million Private Placement Financing Including Lead Investment by Eric Sprott
VANCOUVER, BC / ACCESSWIRE / November 16, 2020 / Canarc Resource Corp. (TSX:CCM)(OTCQB:CRCUF)...
About this update from Canagold Resources Ltd
[{"type":"text","content":"Canarc Closes CAD$5.2 Million Second Tranche of CAD$8.4 Million Private Placement Financing Including Lead Investment by Eric SprottVANCOUVER, BC / ACCESSWIRE / November 16, 2020 / Canarc Resource Corp. (TSX:CCM)(OTCQB:CRCUF)(Frankfurt:CAN) (\"Canarc\" or the \"Company\") announces that it has closed the second and final CAD$5.2 million tranche of its CAD$8.4 million private placement, previously announced by Canarc in press releases dated August 19, 2020, September 3, 2020 and October 21, 2020.The second tranche of the private placement consisted of the issuance of 65 million units (each, a \"Unit\") priced at CAD$0.08 per unit for total proceeds of CAD$5.2 million (the \"Offering\"). The second tranche included the issuance of 5.4 million Units to certain of the Company's insiders (the \"Issuance\") including participation from Canarc's Chairman, Bradford Cooke for 2.0 million Units, in addition to the 3.0 million units he purchased in the first tranche, to maintain his approximate 4% interest in the Company. Shareholders of the Company approved the Offering on October 19, 2020.Pursuant to the Offering, each Unit consists of one common share of Canarc (\"Common Share\") and one-half of one Common Share purchase warrant (each whole warrant, a \"Warrant\"), with each Warrant entitling the holder to acquire one additional Common Share of the Company at an exercise price of CAD$0.13 for a period of 24 months from the closing date of the Offering. If the daily volume-weighted average price of Canarc's Common Shares is equal to or greater than CAD$0.20 for a period of 10 consecutive trading days, Canarc will have the right to accelerate the expiry date of the Warrants by giving written notice to the Warrant holders that the Warrants will expire on the date that is 30 days from the date notice is provided by Canarc to the Warrant holders. Finders' fees of 6% were payable in cash and in Warrants on certain portions of the Offering, with the finders' fee Warrants having the same terms as the underlying Warrants in the Offering.Investment by Eric SprottPursuant to the Offering, Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired 12,500,000 Units for a total consideration of $1,000,000. Following the completion of the Offering, Mr. Sprott's beneficially owns or controls 35,701,856 Common Share...