Business
Encanto Announces Closing of Common Share Private Placement of $2.7 Million
TSXV:EPO VANCOUVER, April 8, 2013 /CNW/ - Encanto Potash Corp. ("Encanto" or the "Com...
About this update from Encanto Potash Corp.
[{"type":"text","content":"\n\n\n\n\n\nTSXV:EPO\n\n\nVANCOUVER, April 8, 2013 /CNW/ - Encanto Potash Corp. (\"Encanto\" or the\n \"Company\") (TSXV: EPO) (OTCQX: ENCTF) is pleased to announce the\n closing of the private placement of 7,950,000 common shares at a price\n of $0.34 per share for gross proceeds of $2,703,000 previously\n announced April 2, 2013.\n\n\nA finders' fee of 5% of the gross proceeds was paid in connection with\n the financing.  The Company intends to use the proceeds to ensure the\n Feasibility Study on the Muskowekwan First Nation property and the\n associated infrastructure and logistics studies are funded to remain on\n track for a late 2013 completion date, as well as provide general\n working capital for the Company.  The securities issued in connection\n with this Offering are subject to a 4-month \"hold period\" as prescribed\n by the TSX Venture Exchange and applicable securities laws expiring\n August 9, 2013.\n\n\nPursuant to the private placement, Hamad Al-Wazzan of Plot 71 Jahra\n Road, Pepsi Cola St, Shuwaik, Kuwait acquired 7,350,000 common shares\n at $0.34 per common share which represent 2.57% of the issued and\n outstanding common shares of the Company following completion of the\n private placement.\n\n\nAs a result of the acquisition of securities described above, Hamad\n Al-Wazzan holds 7,350,000 common shares representing 2.57% of the\n current issued and outstanding common shares of the Company, and would\n own 37,350,000 common shares representing 11.81% on a partially diluted\n basis assuming the conversion of $7.5 million in convertible\n debentures.\n\n\nThe Company is advised that Hamad Al-Wazzan acquired these securities\n for investment purposes and has no present intention to acquire further\n securities of the Company, although he may in the future acquire or\n dispose of securities of the Company, through the market, privately or\n otherwise, as circumstances or market conditions warrant.  The\n exemption relied upon to acquire the securities was BC Instrument\n 72-503 on the basis that Mr. Al-Wazzan is not a resident of British\n Columbia and is not a resident of any other Canadian jurisdiction.  A\n copy of the early warning report required by National Instrument 62-103\n has been provided to the Company and can be obtained by contacting the\n Company as indicated below.\n\n\nAb...