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Cobalt Blockchain Completes $1 Million First Tranche of Private Placement and Announces Debt Settlement
Toronto, Ontario--(Newsfile Corp. - August 26, 2020) - Cobalt Blockchain Inc. (TSXV: COBC...
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[{"type":"text","content":"Cobalt Blockchain Completes $1 Million First Tranche of Private Placement and Announces Debt SettlementToronto, Ontario--(Newsfile Corp. - August 26, 2020) - Cobalt Blockchain Inc. (TSXV: COBC) (OTC Pink: COBCF) (\"COBC\" or the \"Company\") announced today that it has completed a first tranche of its previously announced private placement of up to $4.5 million of units (\"Units\"), raising gross proceeds of $1,000,000 (the \"First Tranche\"). The First Tranche was completed on a brokered basis with IBK Capital Corp. acting as Agent (the \"Agent\"). In the First Tranche, the Company issued and sold 20,000,000 Units at a price of $0.05 per Unit, with each Unit consisting of one common share of the Company and one common share purchase warrant (a \"Warrant\"). Each Warrant entitles the holder to acquire one additional common share of the Company at a price of $0.20 until August 25, 2022. The Company is pursuing completion of the balance of the financing, which may be completed on a brokered or non-brokered basis and in one or more tranches. Insiders of the Company may particpate in some or all of the further tranches.In consideration for its services in connection with the First Tranche, the Company paid the Agent a cash fee of $70,000, reimbursed it for certain expenses and issued to the Agent 2,000,000 non-transferable broker warrants (the \"Broker Warrants\"). Each Broker Warrant entitles the holder to acquire one Unit of the Company (having the same terms as those issued in the First Tranche) at a price of $0.05 until August 25, 2022. The Agent is a \"connected issuer\" and \"related issuer\" of the Company, as defined in Canadian securities legislation, by virtue of the ownership of securities of the Company by its directors and officers. The Company may pay similar fees to brokers and/or finders, including the Agent, in connection with further tranches of the private placement. Net proceeds from the First Tranche will be used for working capital, other general corporate purposes and to fund the debt settlement referred to below. All securities issued in the First Tranche are subject to a 4-month hold period in Canada and such longer periods as may be required under other applicable securties laws.A greater than 10% shareholder of the Company acquired 3,000,000 Units, or approximately 15% of the number sold in the First ...