Business
GFG Resources Announces Private Placement Financing of up to C$3.0 Million
SASKATOON, Saskatchewan, Nov. 09, 2021 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces a private placement
About this update from Gfg Resources, Inc.
[{"type":"text","content":" SASKATOON, Saskatchewan, Nov. 09, 2021 (GLOBE NEWSWIRE) -- GFG Resources Inc. (TSXV: GFG) (OTCQB: GFGSF) (“GFG” or the “Company”) announces a private placement to raise gross proceeds of up to C$3.0 million (the “Offering”). The Offering will consist of any combination of (i) units of the Company (“Units”) at a price of C$0.145 per Unit; (ii) common shares of the Company that will qualify as \"flow-through shares\" for the purposes of the Income Tax Act (Canada) (“FT Shares”) at a price of C$0.17 per FT Share; and (iii) premium units of the Company (“Premium Units”) at a price of C$0.207 per Premium Unit, subject to maximum aggregate gross proceeds of C$3.0 million of which at least C$1.0 million will be raised through the issuance of Units. Each Unit shall consist of one common share of the Company (which shall not be a “flow-through share”) and one-half of one share purchase warrant, with each whole share purchase warrant (a “Warrant”) entitling the holder thereof to acquire one additional common share of the Company (which shall not be a “flow-through share”) at an exercise price of C$0.22 for a period of 24 months from the date of issuance. Each Premium Unit shall consist of one FT Share (a “Premium FT Share”) and one-half of one Warrant. If during the exercise period of the Warrants, but after the resale restrictions on the common shares have expired, the closing price of the common shares is at a price equal to or greater than $0.36 for a period of 10 consecutive trading days, GFG will have the right to accelerate the expiry date of the Warrants by giving notice, via a new release, to the holders of the Warrants that the Warrants will expire on the date that is 30 days after the issuance of said news release. The gross proceeds raised from the sale of the FT Shares and Premium FT Shares will be used for exploration activities in Ontario that will qualify as “Canadian Exploration Expenses” (within the meaning of the Income Tax Act (Canada)). The net proceeds raised from the sale of the Units and the Warrants comprising, in part, the Premium Units, will be used for exploration activities on the Company’s projects in Ontario as well as for general working capital purposes. The Offering is scheduled to close on or about November 30, 2021 and is subject to certain conditions, including, but not limited to, the receipt of all n...