Business
Guanajuato Silver Closes C$8,010,000 "Bought Deal" Financing
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About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"Guanajuato Silver Closes C$8,010,000 \"Bought Deal\" FinancingNOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / August 10, 2023 / Guanajuato Silver Company Ltd. (TSX-V:GSVR)(AQUIS:GSVR) (\"Guanajuato Silver\" or the \"Company\") is pleased to announce the closing of its previously announced bought deal offering of 22,250,000 units of the Company (the \"Units\") at a price of C$0.36 per Unit (the \"Offering Price\") for gross proceeds of C$8,010,000 (the \"Offering\") with Cantor Fitzgerald Canada Corporation, who acted as the sole underwriter and bookrunner (\"Cantor Fitzgerald\").James Anderson, Chairman & CEO, said, \"We are pleased to have worked with Cantor Fitzgerald, a financial services firm with over 70 years of market experience, on this bought deal financing, which will help us execute our growth strategy as we continue to build Guanajuato Silver into Mexico's next mid-tier silver producer.\"Each Unit consisted of one common share of the Company (a \"Unit Share\") and one common share purchase warrant (a \"Warrant\"). Each Warrant entitles the holder to acquire one common share of the Company for 18 months from the date of closing at a price of C$0.55. The Company has paid Cantor Fitzgerald a cash commission totalling $480,600 or 6.0% of the gross proceeds of the Offering and 1,335,000 broker warrants representing 6.0% of the total number of Units sold. The broker warrants are exercisable on the same terms as the Warrants. The net proceeds from the Offering will be used for working capital and general corporate purposes.The Offering also included a lead order from a large U.S. based investment fund totalling 8,500,000 Units or $3,060,000. In accordance with the fund's internal investment policies, the fund could accept only a reduced number of Warrants, being 7,396,381 Warrants, as part of its subscription. The remaining 1,103,619 Warrants were issued to Cantor Fitzgerald, as underwriter, in consideration for, among other services, guaranteeing the Offering on a bought deal basis.All securities issued under the Offering are subject to a four month hold period expiring December 11, 2023.This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction ...