Business
Elcora Announces Closing of Private Placement
Halifax, Nova Scotia--(Newsfile Corp. - February 2, 2017) - Troy Grant, President and CEO of E...
About this update from Elcora Advanced Materials Corp.
[{"type":"text","content":"\nElcora Announces Closing of Private PlacementHalifax, Nova Scotia--(Newsfile Corp. - February 2, 2017) - Troy Grant, President and CEO of ELCORA ADVANCED MATERIALS CORP. (TSXV: ERA) (OTCQB: ECORF) (FSE: ELM), (the \"Company\" or \"Elcora\"), is pleased to announce that the Company closed the first tranche of the non-brokered private placement financing (the \"Private Placement\") announced on January 31, 2017. The Private Placement is up to 20,370,370 units (\"Units\") at a price of $0.27 per Unit to raise aggregate gross proceeds of up to $5,500,000. Each Unit will be comprised of one common share and one common share purchase warrant. Each full warrant gives the holder the right to purchase one additional common share of Elcora at an exercise price of $0.34 for two years following the closing of the Private Placement. The term of the warrants may be accelerated in the event that the issuer's shares trade at or above a price of $0.60 cents per share for a period of 20 consecutive days. In such case of accelerated warrants, the issuer may give notice, in writing or by way of news release, to the subscribers that the warrants will expire 45 days from the date of providing such notice.Elcora has issued 9,326,093 Units at a price of $0.27 per Unit for aggregate gross proceeds of $2,518,045. In addition the Company issued 9,326,093 share purchase warrants entitling the holder to purchase one additional common share of Elcora at an exercise price of $0.34 for two years following the closing of the Private Placement. The term of the warrants may be accelerated in the event that the issuer's shares trade at or above a price of $0.60 cents per share for a period of 20 consecutive days. In such case of accelerated warrants, the issuer may give notice, in writing or by way of news release, to the subscribers that the warrants will expire 45 days from the date of providing such notice. The Company will pay finders' fees of $44,283 in cash and 164,010 in common shares in connection with this tranche of the Private Placement.All securities issued pursuant to the Private Placement will be subject to a statutory four-month hold period. The proceeds from the Private Placement will be used to increase the output of the Sri Lanka mining site in order to meet the demand, continued Lithium-Ion battery testing and development and for general corpo...