EastCoal Announces Private Placement, Appointment of A New Director and Name Change

About this update from Cotec Holdings Corp

[{"type":"text","content":"EastCoal Announces Private Placement, Appointment of A New Director and Name ChangeVANCOUVER, BC / ACCESSWIRE / August 12, 2021 / EastCoal Inc (TSX-V:ECX) (\"EastCoal\" or the 'Company') is pleased to announce that it proposes to proceed with a non-brokered private placement (the 'Private Placement') of 4,040,404 units (the 'Units') at a price of $0.12375 per Unit, for gross proceeds of $500,000. Each Unit will be comprised of one common share (a \"Share\") in the share capital of the Company and one share purchase warrant (a \"Warrant\"). Each Warrant will entitle the holder to acquire one additional Share at a price of $0.165 for a period of twelve months from the closing date.The Company plans to allocate the gross proceeds of the Private placement to general working capital.It is currently anticipated that 2,303,030 Units will be purchased by Kings Chapel International Limited (\"Kings Chapel\"), a BVI registered company. Following the closing of the Private Placement, Kings Chapel will own 10% of the Company's outstanding Shares and 18.2% assuming the exercise of the Warrants. Kings Chapel is also pursuing a potential opportunity to purchase additional Shares, and, if successful, will own 21.3% of the Company's outstanding Shares assuming the exercise of the Warrants. The Warrants issued to Kings Chapel will contain a restriction preventing the exercise of the Warrants if such exercise would result in Kings Chapel holding greater than 20% of the Company's outstanding Shares until such time as the Company has received shareholder approval to the creation of a new control person.The Company has scheduled an annual and special meeting of its shareholders to be held on September 20, 2021 and will at such meeting request that the disinterested shareholders of the Company approve Kings Chapel as a possible new control person of the Company. As noted above, Kings Chapel will not be allowed to exercise a portion of the Warrants prior to such approval.The Private Placement is subject to receipt of TSX Venture Exchange (\"TSXV\") approval. All securities issued pursuant to the Private Placement will be subject to a hold period of four months and one day from the date of issuance, in accordance with applicable securities legislation.The Company is also pleased to announce that Mr. Julian Treger, a person closely associated with Kings ...

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