Business
Class 1 Nickel and Technologies Closes $4 Million Private Placement of Flow-Through Units
TORONTO, June 07, 2021 (GLOBE NEWSWIRE) -- Class 1 Nickel and Technologies Ltd. (CSE: NICO) (OTCQB: NICLF) (“Class 1 Nickel” or the “Company”) is pleased to ann
About this update from Class 1 Nickel & Technologies Ltd.
[{"type":"text","content":" TORONTO, June 07, 2021 (GLOBE NEWSWIRE) -- Class 1 Nickel and Technologies Ltd. (CSE: NICO) (OTCQB: NICLF) (“Class 1 Nickel” or the “Company”) is pleased to announce that it has closed its previously announced brokered private placement (the “Offering”) led by Echelon Capital Markets (“Echelon”), as sole agent and bookrunner. Pursuant to the Offering, the Company issued 3,030,000 units to residents of Quebec at a price of $0.65 per Unit and 3,403,334 units to residents in Canada at a price of $0.60 per Unit, resulting in a total of 6,433,334 units (each a “Unit”) issued for total gross proceeds of $4,011,500. Each Unit is comprised of one common share in the capital of the Company (a “Unit Share”), and one common share purchase warrant (a “Warrant”). Each Warrant is exercisable to purchase one common share in the capital of the Company (a “Warrant Share”) at an exercise price of $0.85 per common share for Units issued to residents of Quebec and $0.80 per common share for Units issued to residents in Canada for a period of three years from the date of issuance. The Unit Shares were issued as “flow-through shares” as defined in subsection 66(15) of the Income Tax Act (Canada) (as “Tax Act”), with each such Unit Share entitling the holder to a renunciation of Qualifying Expenditures (as defined in the Tax Act). In addition, with respect to Québec resident subscribers who are eligible individuals under the Taxation Act (Québec), the Canadian exploration expenses will also qualify for inclusion in the \"exploration base relating to certain Québec exploration expenses\" within the meaning of section 726.4.10 of the Taxation Act (Québec) and for inclusion in the \"exploration base relating to certain Québec surface mining expenses or oil and gas exploration expenses\" within the meaning of section 726.4.17.2 of the Taxation Act (Québec). The net proceeds from the Offering will be used for exploration expenditures at the Company’s Alexo-Dundonald Project in Ontario and the Somanike Project in Quebec. Echelon received a cash commission (the “Commission”) equal to 7.0% of the gross proceeds of the Offering and the Company shall issue to Echelon compensation options (the “Compensation Options”) equal to 7.0% of the number of Units sold under the Offering. Each Compensation Option entitled the holder thereof to subscribe for one common sha...