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Electric Metals (USA) Limited Announces Final Closing of Quail Bend Financing
EML obtains shareholder approval for creation of Quail Bend as "control person." EML closes fi...
About this update from Electric Metals Usa Limited
[{"type":"text","content":"Electric Metals (USA) Limited Announces Final Closing of Quail Bend FinancingEML obtains shareholder approval for creation of Quail Bend as \"control person.\"EML closes final tranche of Quail Bend financing for aggregate gross proceeds of $5,000,000.Steve Durbin appointed to the Board of Directors.Toronto, Ontario--(Newsfile Corp. - October 10, 2023) - Electric Metals (USA) Limited (TSXV: EML) (OTCQB: EMUSF) (\"EML\" or the \"Company\"), further to its press releases of August 29, 2023 and August 22, 2023 is pleased to announce it has closed the second and final tranche (the \"Final Tranche\") of its previously announced non-brokered financing (the \"Offering\"). Pursuant to the Final Tranche closing, the Company issued a total of 14,255,319 units (the \"Units\") at a price of $0.235 per Unit for gross proceeds of $3,349,999.97. Each Unit consisted of one common share in the capital of the Company (each, a \"Common Share\") and one share purchase warrant (each, a \"Warrant\") with each Warrant exercisable to acquire one additional Common Share at an exercise price of $0.35 for a period of 24 months from the date of issuance of the warrant, which may be cashlessly exercised subject to certain conditions.The Final Tranche closing was completed in connection with a binding letter of intent between the Company and Quail Bend LLC (\"Quail Bend\") dated May 12, 2023, as amended August 21, 2023 (the \"LOI\") pursuant to which Quail Bend, or an affiliate thereof, agreed to acquire up to 21,276,596 Units. Following an initial closing of 5,319,149 Units on June 16, 2023 and a further closing of an additional 1,702,128 Units on August 28, 2023, the Company and Quail Bend have now completed the purchase and sale of an aggregate of 21,276,596 Units for aggregate gross proceeds of $5,000,000.On closing of the Final Tranche, Quail Bend became a \"Control Person\" within the meaning of such term under applicable TSX Venture Exchange (\"TSXV\") policies and applicable securities laws. The Company called a meeting of shareholders which was held on October 5, 2023 at which a resolution approving the creation of Quail Bend and its affiliates as a new Control Person of the Company was passed by the disinterested shareholders of the Company. A minimum of 80.0% of the funds raised from proceeds of the Offering from Quail Bend will be used on developm...