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Grid Metals Corp. Closes Initial Tranche of Private Placement
Not for distribution to United States Newswire Services or for dissemination in the United S...
About this update from Grid Metals Corp.
[{"type":"text","content":"Grid Metals Corp. Closes Initial Tranche of Private PlacementNot for distribution to United States Newswire Services or for dissemination in the United StatesTORONTO, ON / ACCESSWIRE / June 1, 2021 / Grid Metals Corp. (the \"Company\") (TSXV:GRDM)(OTCQB:MSMGF) is pleased to announce that its has closed the initial tranche of its previously announced private placement for gross proceeds of C$ 2,952,440 (the \"Offering\"). A second tranche of the Offering is anticipated to close within approximately one week. Under the Offering, the Company sold the following securities:7,533,818 units of the Company (the \"Units\") at a price of C$0.22 per Unit;5,180,000 flow-through units of the Company (the \"FT Units\") to traditional flow-through purchasers at a price of C$0.25 per FT Unit.Each Unit consisted of one common share of the Company (each, a \"Common Share\") and one half of one common share purchase warrant (a \"Warrant\"). Each Warrant will entitle the holder thereof to acquire one Common Share at a price of C$0.33 at any time on or before May 28, 2023. Each FT Unit consisted of one \"flow-through share\" within the meaning of the Income Tax Act (Canada) (each, a \"FT Share\") and one half of one Warrant.The net proceeds from the private placement will be used for exploration of the Company's mineral exploration properties including its East Bull Lake Palladium property and for general working capital purposes. Proceeds from the sale of FT Shares will be used to incur \"Canadian exploration expenses\" as defined in subsection 66.1(6) of the Income Tax Act and \"flow through mining expenditures\" as defined in subsection 127(9) of the Income Tax Act (\"Qualifying Expenditures\"). Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2021, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.Red Cloud Securities inc. (\"Red Cloud\") acted as a finder in connection with a portion of the Offering. In total the Company paid aggregate finders fees consisting of $190,880 cash and a total of 654,322 finder's warrants which were solely payable to Red Cloud. Of the finder's warrants 291,722 ( for Units ) entitle the finder to purchase of one common share of the Company at a price of C$022 until May 28, 2023. 362,600 of the finders warr...