Business
Electric Metals (USA) Limited ("EML") Announces Non-Brokered Financing
Issue up to 26,595,746 Units (assuming a Unit price of $0.235, proceeds of approximately $6,250,0...
About this update from Electric Metals Usa Limited
[{"type":"text","content":"Electric Metals (USA) Limited (\"EML\") Announces Non-Brokered FinancingIssue up to 26,595,746 Units (assuming a Unit price of $0.235, proceeds of approximately $6,250,000 - see below for more detailed information).EML insiders to participate along with Quail Bend LLC (\"Quail Bend\").New funding will allow EML to expedite exploration drilling, metallurgical and battery test work and to initiate process design and preliminary mine studies at the high-grade Emily Manganese Project, Minnesota, U.S.Toronto, Ontario--(Newsfile Corp. - May 16, 2023) - Electric Metals (USA) Limited (TSXV: EML) (\"EML\" or the \"Company\"), is pleased to announce a non-brokered financing of up to 26,595,746 units of the Company (the \"Units\") (the \"Offering\"). Each Unit will consist of one common share in the capital of the Company (each, a \"Common Share\") and one share purchase warrant (each, a \"Warrant\") exercisable to acquire one additional Common Share for a period of 24 months from the date of issuance of the Unit.In connection with the Offering, the Company has entered into a binding letter of intent with Quail Bend dated May 12, 2023 (the \"LOI\") pursuant to which Quail Bend will participate in the Offering and acquire up to 21,276,596 Units or up to a 16.7% ownership interest in the Company (the \"Strategic Investment\"). The LOI provides that the Quail Bend portion of the Offering will close in multiple tranches. The first closing shall occur on or before June 15, 2023 (the \"First Closing\") and shall be for an amount of Units purchased to be determined by Quail Bend subject to a minimum of 5,319,150 Units for minimum proceeds of not less than C$1,250,000.25 and a maximum number of Units which does not result in Quail Bend becoming a \"Control Person\" as defined by the policies of the TSX Venture Exchange (the \"TSXV\"). The First Closing is also expected to include the subscription of 5,319,150 Units by certain insiders of the Company and other third parties mutually acceptable to the Parties. The purchase price for the Units sold in the First Closing will be $0.235 per Unit. Each Warrant partially comprising the Units issued pursuant to the First Closing will be exercisable at a price of $0.35 per share for a period of 24 months following the distribution thereof. The second closing (\"Second Closing\") shall be completed in one or...