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Falco Resources Announces Completion of C$12.28 Million Private Placement
MONTREAL, Aug. 18, 2021 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSX-V:FPC) ("Falco" or the "Company") is pleased to announce that it has completed its previou
About this update from Falco Resources Ltd.
[{"type":"text","content":" MONTREAL, Aug. 18, 2021 (GLOBE NEWSWIRE) -- Falco Resources Ltd. (TSX-V:FPC) (\"Falco\" or the \"Company\") is pleased to announce that it has completed its previously announced private placement (the “Offering”) of units (the “Units”) with a syndicate of underwriters led by CIBC Capital Markets (collectively, the “Underwriters”). Pursuant to the Offering, Falco has issued an aggregate of 30,700,000 Units at a price of C$0.40 per Unit (the “Offering Price”) for gross proceeds of C$12,280,000. Each Unit consists of one common share of the Company (each a “Common Share”) and one-half of one common share purchase warrant (each full warrant, a “Warrant”). Each Warrant is exercisable to acquire one Common Share until July 31, 2025, at an exercise price of C$0.55. The expiry date of the Warrants may be accelerated by the Company at any time following the six-month anniversary of the closing date of the Offering if the volume-weighted average trading price of the Common Shares on the TSX Venture Exchange is greater than C$0.80 for any 10 consecutive trading days, at which time the Company may accelerate the expiry date by issuing a press release announcing the reduced warrant term whereupon the Warrants will expire on the 30th calendar day after the date of such press release. The Company intends to use the net proceeds from the Offering for the development of the Horne 5 Project and for general corporate purposes. In connection with the Offering, the Underwriters received an aggregate cash fee equal to 5.0% of the gross proceeds from the Offering. All Common Shares and Warrants issued pursuant to the Offering are subject to a four-month hold period under applicable securities laws in Canada. Insiders of the Company subscribed for 6,472,500 Units under the Offering. Each transaction with an insider of the Company constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company is relying on exemptions from the formal valuation requirements of MI 61-101 pursuant to section 5.5(a) and the minority shareholder approval requirements of MI 61-101 pursuant to section 5.7(1)(a) in respect of such insider participation as the fair market value of the transaction, insofar as it involves interested parties, does n...