Business
Great Atlantic Resources Completes $2.0 Million Offering Backed by Mr. Eric Sprott
VANCOUVER, BC / ACCESSWIRE / June 11, 2021 / Great Atlantic Resources Corp. (TSXV.GR) (the "Company" or "Great Atlantic"), is pleased to announce that it has cl
About this update from Great Atlantic Resources Corp.
[{"type":"text","content":" VANCOUVER, BC / ACCESSWIRE / June 11, 2021 / Great Atlantic Resources Corp. (TSXV.GR) (the \"Company\" or \"Great Atlantic\"), is pleased to announce that it has closed its private placement offering (the \"Offering\") for aggregate gross proceeds of approximately $2,060,000, consisting of: (i) $1,360,000 in flow-through units of the Company (the \"FT Units\") at a price of $0.68 per FT Unit, and (ii) $700,000 in units of the Company (the \"Units\") at a price of $0.50 per Unit. Each FT Unit is comprised of one common share of the Company that will qualify as a \"flow-through share\" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the \"Tax Act\") (a \"FT Common Share\") and one common share purchase warrant of the Company (a \"Warrant\"). Each Unit is comprised of one common share of the Company (a \"Common Share\") and one Warrant. Each Warrant entitles the holder to purchase one Common (a \"Warrant Share\") at an exercise price equal to $0.75 at any time up to 36 months from closing of the Offering. The gross proceeds from the sale of FT Units (other than the minimal amount allocable to the Warrants) will be used for exploration expenses on the Company's mining projects as permitted under the Tax Act to qualify as Canadian Exploration Expenses (\"CEE\") as defined in the Tax Act. The FT Common Shares, Common Shares and the Warrant Shares to be issued under the Offering have a hold period of four months and one day closing of the Offering. In a second-step transaction, and part and parcel of the completion of the Offering, Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 2,000,000 Units for approximate consideration of $1,000,000. Subsequent to the closing of the offering, Mr. Sprott beneficially owns or controls 2,000,000 Common Shares of the Company and 2,000,000 Warrants, representing approximately 9.2% of the issued and outstanding common shares of the Company on a non-diluted basis and approximately 16.9% of the issued and outstanding common shares of the Company on a partially diluted basis, assuming exercise of the Warrants forming part of the Units acquired. Prior to the offering, Mr. Sprott did not beneficially own or control any securities of the Company. The Units were acquired by Mr. Sprott for investment purposes. Mr. Sprott has a long-te...