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Electric Metals (USA) Limited Announces First Tranche Closing of Quail Bend Financing and Updates Warrant Exercises
Toronto, Ontario--(Newsfile Corp. - August 29, 2023) - Electric Metals (USA) Limited (TSXV: EML)...
About this update from Electric Metals Usa Limited
[{"type":"text","content":"Electric Metals (USA) Limited Announces First Tranche Closing of Quail Bend Financing and Updates Warrant ExercisesToronto, Ontario--(Newsfile Corp. - August 29, 2023) - Electric Metals (USA) Limited (TSXV: EML) (OTCQB: NVDSF) (\"EML\" or the \"Company\"), further to its press release of August 22, 2023 is pleased to announce it has closed the first tranche (the \"First Tranche\") of its previously announced non-brokered financing (the \"Offering\"). Pursuant to the first tranche closing, the Company issued a total of 1,702,128 units (the \"Units\") at a price of $0.235 per Unit for gross proceeds of $400,000.08. 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.The First 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, the Company and Quail Bend have now completed the purchase and sale of an aggregate of 7,021,277 Units for aggregate gross proceeds to date of $1,650,000.10. Please see the press release of the Company dated June 19,2023 for more information regarding the initial closing.The Company and Quail Bend anticipate a further closing of 14,255,319 Units for gross proceeds of $3,349,999.97 (the \"Second Tranche\"), to be completed within five days of the receipt of shareholder approval. On closing of the Second Tranche, Quail Bend will become a \"Control Person\" within the meaning of such term under applicable TSX Venture Exchange (\"TSXV\") policies. The Company has called a meeting of shareholders to be held on October 5, 2023 to consider a resolution approving the creation of Quail Bend and or its SPV as a new Control Person of the Company. Please see the press release of the Company dated August 22, 2023 for further information. There can be no assurances that the closing of the Second Tranche will occur, either on the terms outlined or at all.A minimum of 80.0% of the fun...