Business
Northway Resources and Kenorland Minerals Announce Brokered Private Placement of Up to C$12 Million
VANCOUVER, BC, Sept. 28, 2020 /CNW/ - Northway Resources Corp. (the "Company") and Kenorland Minerals Ltd. ("Kenorland") jointly announce that further to their
About this update from Kenorland Minerals Ltd.
[{"type":"text","content":" VANCOUVER, BC, Sept. 28, 2020 /CNW/ - Northway Resources Corp. (the \"Company\") and Kenorland Minerals Ltd. (\"Kenorland\") jointly announce that further to their press release dated September 14, 2020, Kenorland has entered into an agreement with a syndicate of agents led by Stifel GMP and including Canaccord Genuity Corp, Haywood Securities Inc., Laurentian Bank Securities Inc. and Echelon Wealth Partners Inc. (the \"Agents\") pursuant to which the Agents will undertake a brokered private placement of up to 12 million Kenorland subscription receipts (each, a \"Subscription Receipt\"), on a best efforts basis, at a price of C$1.00 per Subscription Receipt (the \"Offering Price\") for gross proceeds of up to C$12 million (the \"Offering\"). Kenorland has agreed to grant the Agents an option (the \"Agents' Option\"), which will allow the Agents to offer such number of additional Subscription Receipts as is equal to up to 25% of the Subscription Receipts issued under the Offering, having the same terms as the Subscription Receipts. The Agents' Option may be exercised in whole or in part at any time up to two days prior to the closing of the Offering. Each Subscription Receipt will entitle the holder thereof to receive, without any further action on the part of the holder or payment of any additional consideration, one common share of the resulting issuer (each, a \"Resulting Issuer Share\"), upon completion of the Transaction (as defined below) (the \"Resulting Issuer\"), subject to the satisfaction or waiver of the Escrow Release Conditions (as defined herein) prior to December 31, 2020 (or such later date as may be agreed to by Kenorland and the Agents) (the \"Outside Date\"), and provided that the Transaction has not otherwise been terminated. As set out in the press release of September 14, 2020, Northway's acquisition of Kenorland is to be conducted by way of a three-cornered amalgamation among Northway, Kenorland and a wholly-owned subsidiary of Northway (the \"Amalgamation\") which will result in the reverse takeover of Northway by Kenorland (the \"Transaction\"). The Resulting Issuer is expected to be named \"Kenorland Minerals Ltd.\" or such other name as the Company and Kenorland may determine. As previously announced, prior to the completion of the Transaction, Northway intends to undertake a common share consol...