Business
NovoCarbon Announces Update to its Private Placement and Shares for Debt
NovoCarbon Announces Update to its Private Placement and Shares for Debt.
About this update from Great Lakes Graphite Inc
[{"type":"text","content":"\nTORONTO, March 12, 2019 (GLOBE NEWSWIRE) -- Further to its news release of March 8, 2019, Great Lakes Graphite Inc., doing business as NovoCarbon Corporation, (“​GLK​”, “NovoCarbon​” or the “​Company​” TSX-V:GLK, OTCQB:GLKIF, FWB:8GL) is announcing additional details with respect to the non-brokered private placement publicized earlier.\n The Company will be undertaking a non-brokered private placement pursuant to which the Company will issue units (“Units”) at $0.05, each Unit consisting of one (1) common share of the Corporation (a “Common Share”) and one (1) common share purchase warrant (a “Warrant”) with each Warrant entitling the holder thereof to purchase one Common Share at a price of $0.07 for a period of three years from the date of closing, for aggregate gross proceeds of up to $500,000. The Transaction is expected to close on or about March 21, 2019 and is subject to obtaining various TSX Venture Exchange, regulatory and other approvals and other customary closing conditions. Three of the anticipated subscribers to the private placement will be the directors of the Company. Accordingly, the proposed Transaction is considered a “related party” transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and the policies of the TSX Venture Exchange. The Company is relying on the exemptions from the formal valuation requirements and minority shareholder approval requirements of MI 61-101 contained in Section 5.5(a) and Section 5.7(1)(a) in respect of the related party transaction on the basis that the fair market value of the transaction does not exceed more than 25% of the Company’s market capitalization. The Company will be filing a material change report in respect of the related party transaction on SEDAR less than 21 days prior to the closing of the transaction due to the fact that the Company wished to close the transaction as soon as practicable to enable it to use the funds for short-term cash requirements. The gross proceeds of the private placement will be used for general working capital purposes. The Company will also make two shares for debt issuances. The first issuance will consist of 1,600,000 Common...