Business
Encanto Potash Corp. announces $6,000,000 private placement offering of flow-through shares and units
Encanto Potash Corp. announces $6,000,000 private placement offering of flow-through shares and u...
About this update from Encanto Potash Corp.
[{"type":"text","content":"\n\n\n\n May 17, 2010 (Canada NewsWire Group) -- /NOT FOR DISTRIBUTION TO A US NEWSWIRE SERVICE OR FOR DISSEMINATION IN THE UNITED STATES/\n\nTrading Symbol: TSXV EPO.V\n\n Encanto Potash Corp. (the "Company") is pleased to announce that it has entered into an agreement with Mackie Research Capital Corporation ("Mackie Research Capital") to act as lead agent and sole bookrunner, on a best-efforts basis, for a private placement offering (the "Offering") of up to $5,000,000 in common shares to be issued on a "flow-through" basis ( the "Flow-Through Shares") and up to $1,000,000 in units (the "Units"), for aggregate gross proceeds to the Company of $6,000,000.\nThe Offering will be priced in the context of the market, with indicative terms of $0.23 per Flow-Through Share and $0.20 per Unit, each Unit consisting of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder thereof to acquire one common share of the Company at a price of $0.25 for a period of 24 months from the date of the closing of the Offering.\nThe proceeds from the issuance of the Flow-Through Shares will be used to fund the Company's ongoing exploration programs on its qualifying properties in the Province of Saskatchewan. The proceeds from the issuance of the Units will be used by the Company for working capital.\nIn connection with the Offering, a cash commission of 6.0% of the aggregate gross proceed arising therefrom will be paid to Mackie Research Capital. In addition, upon closing of the Offering Mackie Research Capital will receive non-transferable options, exercisable into common shares of the Company at any time up to 24 months from the date of the closing of the Offering, equal to 6.0% of the number of Units issued and exercisable at the price of the Units, and 5.0% of the number of Flow-Through Shares issued and exercisable at the price of the Flow-Through Shares.\nAll securities issued in connection with the Offering will be subject to a hold period of four months from the date of the closing of the Offering. The Offering is subject to the approval of the TSX Venture Exchange.\nAt this time the Company also announces the resignation of Wayne Roberts from its Board of Directors. The Company would like to thank Mr. Robe...