Business
Global Atomic Closes C$3.3M Financing
TORONTO, May 15, 2020 (GLOBE NEWSWIRE) -- Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) announced today
About this update from Global Atomic Corporation
[{"type":"text","content":" TORONTO, May 15, 2020 (GLOBE NEWSWIRE) -- Global Atomic Corporation (“Global Atomic” or the “Company”), (TSX: GLO, OTCQX: GLATF, FRANKFURT: G12) announced today it has raised gross proceeds of C$3,323,000 pursuant to the closing of a non-brokered private placement of 5,538,335 Units at a price of C$0.60. Units consist of one common share and one-half common share purchase warrant exercisable at C$0.85 for a period of two years from closing, subject to accelerated expiry should Global Atomic Corporation common shares close at or above C$1.10 on the Toronto Stock Exchange for twenty (20) consecutive trading days. A cash finder’s fee equal to 5% of cash raised and finder’s warrants equal to 5% of common shares placed was paid pursuant to the closing of certain orders for a total of $114,400 and 149,000 finders warrants. Finder’s warrants are exercisable at C$0.67 for a period of two years from closing subject to accelerated expiry as above. All securities issued pursuant to the private placement are subject to a four month hold period ending September 16, 2020. Red Cloud Securities Inc. and Arlington Group Asset Management Ltd. acted as finders in the private placement. Proceeds from the sale of the Units will be used to fund technical work in support of mine permits and feasibility work for the Issuer’s Dasa Property in Niger, West Africa and working capital. Stephen G. Roman, President & CEO stated, “Due to COVID-19 and uncertain markets, we felt it prudent to bolster our working capital in order to complete the necessary technical work required for our Dasa Mining Permit Application. We expect business to return to normal operations in due course and are fortunate to have a very supportive shareholder base and management team who have all participated in this financing.” Certain insiders of the Company subscribed for Units pursuant to the Offering. Any issuance of Units to an insider will be considered to be a \"related party transaction\" within the meaning of Multilateral Instrument 61-101 (“MI 61-101”). The related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders exceeds 25% of the Company's market capitalization. About Global Atomic Global A...