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E36 Capital Announces Upsizing of Concurrent Financing to $3,220,000 and Provides Update with Respect to its Transaction with Kalo Gold Corp.
Kalo Gold Corp. Commences Drill Program at Vatu Aurum Gold Project Vancouver, British Colum...
About this update from Kalo Gold Corp
[{"type":"text","content":"E36 Capital Announces Upsizing of Concurrent Financing to $3,220,000 and Provides Update with Respect to its Transaction with Kalo Gold Corp.Kalo Gold Corp. Commences Drill Program at Vatu Aurum Gold ProjectVancouver, British Columbia--(Newsfile Corp. - December 8, 2020) - E36 CAPITAL CORP. (TSXV: ETSC.P) (\"E36\" or the \"Company\"), a Capital Pool Company as defined in the policies of the TSX Venture Exchange (the \"TSXV\"), is pleased to announce, further to its news release dated September 30, 2020, an increase in the size of its concurrent financing (the \"Concurrent Financing\"). The Concurrent Financing is being undertaken in connection with the Company's proposed acquisition of Kalo Gold Corp. (\"Kalo\"), which is intended to constitute the Company's qualifying transaction (the \"Transaction\").The Concurrent Financing as previously announced was to consist of the issuance of 10,000,000 common shares in the capital of the Company (each, an \"E36 Share\") at a price of $0.20 per E36 Share for gross proceeds of $2,000,000. Due to overwhelming demand, the Company now intends to issue an additional 6,100,000 E36 Shares at a price of $0.20 per E36 Share for minimum total gross proceeds of $3,220,000. It was previously announced that 38,950,000 E36 Shares would be issued to Kalo shareholders in connection with the Transaction. However, based on the number of currently issued and outstanding common shares of Kalo (each, a \"Kalo Share\"), it is expected that the Company will instead issue to the shareholders of Kalo a total of 27,450,000 E36 Shares, on the basis of one E36 Share for each Kalo Share, at a deemed price of $0.20 per E36 Share. As a result of the increase in the Concurrent Financing, the number of E36 Shares outstanding at the closing of the Transaction will increase, such that there will be 51,125,000 Shares outstanding on completion of the Transaction. Insiders may participate in the Concurrent Financing, but such information is not known at this time. The E36 Shares issued pursuant to the Concurrent Financing are expected to constitute 31.5% of the issued and outstanding E36 Shares upon the completion of the Transaction. The following table sets out information respecting the Company's expected sources of cash following the completion of the Transaction. The amounts shown in the table are estimates and are based...