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Galway Metals Announces Closing of $17.35 Million Best Efforts Offering Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED ...
About this update from Galway Metals, Inc.
[{"type":"text","content":"Galway Metals Announces Closing of $17.35 Million Best Efforts Offering FinancingNOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESTORONTO, ON / ACCESSWIRE / June 25, 2020 / Galway Metals Inc. (TSXV:GWM) (\"Galway Metals\" or the \"Company\") is pleased to announce that it has closed the previously announced \"best efforts\" offering for aggregate gross proceeds of $17.35 million, consisting of 17,877,300 common shares of the Company that qualify as \"flow-through shares\" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) (the \"FT Shares\") at a price of $0.635 per FT Share, and 13,636,400 common shares of the Company (\"Offered Shares\") at a price of $0.44 per Offered Share (together, collectively hereinafter referred as the \"Offered Securities\") (the \"Offering\").The Offering was carried out by a syndicate of underwriters led by Paradigm Capital Inc. (the \"Lead Agent\"), and including Laurentian Bank Securities Inc. (collectively, the \"Agents\").Mr. Eric Sprott purchased C$3.0 million of Offered Shares in the Offering. Following the closing of the Offering, Mr. Sprott's fully diluted ownership interest in the Company was approximately 3.8%.The Offering is subject to regulatory approval and all securities issued pursuant to the Offering will have a hold period of four months and one day. The Company intends to use the net proceeds from the Offering to fund ongoing exploration, to update the Company's technical studies, and for general corporate purposes. Gross proceeds received by the Company from the sale of FT Shares will be used to incur Canadian Exploration Expenses (''CEE'') that are ''flow-through'' mining expenditures (as such terms are defined in the Income Tax Act (Canada)). Such gross proceeds will be renounced to the subscribers with an effective date not later than December 31, 2020, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of FT Shares.As consideration for the services provided by the Agents in connection with the Offering: (a) the Agents received a cash commission equal to 6% of the gross proceeds of the Offering; and (b) the Agents received that number of compensation options (the \"Compensation Options\") as is equal to 6% of the number of Offered Securities issued under the ...