Richmond Road Capital Corp. and Fredonia Management Limited Announce Closing of $6.3 Million Subscription Receipt Financing with Significant Participation by Mr. Eric Sprott

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[{"type":"text","content":"Richmond Road Capital Corp. and Fredonia Management Limited Announce Closing of $6.3 Million Subscription Receipt Financing with Significant Participation by Mr. Eric SprottCalgary, Alberta--(Newsfile Corp. - February 25, 2021) - Richmond Road Capital Corp. (TSXV: RRD.H) (the \"Corporation\" or \"RRCC\") and Fredonia Management Limited (\"Fredonia\") are pleased to announce that Fredonia has closed its previously announced brokered private placement of subscription receipts of Fredonia (the \"Subscription Receipts\"), pursuant to which an aggregate of 37,445,310 Subscription Receipts were sold at a price of $0.17 for aggregate gross proceeds of approximately $6.3 million (the \"Financing\") pursuant to an agency agreement (the \"Agency Agreement\") entered into between the Corporation, Fredonia and Paradigm Capital Inc. and Red Cloud Securities Inc. (together, the \"Agents\") dated February 24, 2021.Mr. Eric Sprott subscribed for 8,823,600 Subscription Receipts in the Financing for total gross proceeds to the Corporation of approximately $1.5 million. The Financing was completed in connection with Fredonia's proposed reverse takeover of RRCC (the \"Proposed Transaction\"). It is anticipated that the Proposed Transaction will constitute RRCC's \"Qualifying Transaction\" pursuant to Policy 2.4 of the TSX Venture Exchange (the \"Exchange\"). Following the completion of the Proposed Transaction, the resulting entity (the \"Resulting Issuer\") will hold all of the assets and continue the business of Fredonia. For a description of the Proposed Transaction, see the January 11, 2021 news release issued by RRCC, a copy of which is available on RRCC's SEDAR profile at www.sedar.com. Fredonia intends to use the Escrowed Funds to fund the exploration of its 100% interest in certain license areas within the Deseado Massif geological region in the Province of Santa Crus, Argentina, pay for expenses of the Financing and Proposed Transaction, and for general working capital purposes.Terms of the FinancingEach Subscription Receipt shall entitle the holder thereof to receive, upon automatic exchange in accordance with the terms of the subscription receipt agreement entered into between the Corporation, Fredonia, and the Agents and TSX Trust Company as escrow agent (the \"Escrow Agent\"), without payment of additional consideration or further act ...

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