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Grid Metals Corp. Completes 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. Completes Private PlacementNot for distribution to United States Newswire Services or for dissemination in the United StatesTORONTO, ON / ACCESSWIRE / June 8, 2021 / Grid Metals Corp. (the \"Company\") (TSXV:GRDM)(OTCQB:MSMGF) is pleased to announce that its has closed the second and final tranche of its previously announced private placement and that the total funds raised by the first and second tranche were $3,500,000 which included an over allotment of $500,000.The second tranche consisted of:2,054,545 units of the Company (the \"Units\") at a price of C$0.22 per Unit;382,240 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 June 8, 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.For the second tranche of financing the Company paid aggregate finders fees consisting of $37,590 cash and a total of 167,618 finder's warrants ( 143,818 for Units and 23,800 for FT Units ) to eligible finders. The finders warrants entitle the holder to purchase a share of the company at a price of either $0.22 (Units) or $0.25 per share (FT Units) until June 8, 2023.An insider of the Company participated in the Offering for 17,240 FT Units, which participation constituted a related party transac...