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Kootenay Silver Announces $4.0 Million Private Placement Financing of Units
VANCOUVER, British Columbia, Oct. 18, 2022 (GLOBE NEWSWIRE) -- Kootenay Silver Inc. (“Kootenay” or the “Company”) (TSXV: KTN), is pleased to announce that it ha
About this update from Kootenay Silver Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Oct. 18, 2022 (GLOBE NEWSWIRE) -- Kootenay Silver Inc. (“Kootenay” or the “Company”) (TSXV: KTN), is pleased to announce that it has entered into an agreement with Research Capital Corporation, as the lead agent and sole bookrunner, on behalf of a syndicate of agents, including Red Cloud Securities Inc. (collectively, the “Agents”), in connection with a best efforts, private placement of units of the Company (the “Units”) at a price of $0.10 per Unit (the “Offering Price”) for gross proceeds of up to $4,000,000 (the “Offering”). Each Unit will be comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant shall be exercisable to acquire one Common Share (a “Warrant Share”) at a price of $0.15 per Warrant Share for a period of 36 months from the closing of the Offering. The Agents will have an option (the “Agents’ Option”) to offer for sale up to an additional 15% of the number of Units sold in the Offering at the Offering Price, which Agents’ Option is exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the Offering. The Company intends to use the net proceeds from the Offering for working capital requirements and other general corporate purposes. The securities to be issued under the Offering will be offered by way of private placement in each of the provinces of Canada, and such other jurisdictions as may be determined by the Company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. The Offering is scheduled to close on or about the week of November 7, 2022, or such date as agreed upon between the Company and the Agents (the “Closing”) and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Exchange. The Units to be issued under the Offering will have a hold period of four months and one day from Closing. In connection with the Offering, the Agents will receive an aggregate cash fee equal to 6.0% of the gross proceeds from the Offering, including in respect of any exercise of the Agents’ Option. In addition, the Company will grant the Agents, on date of Closing, non-transferable compensation warrants (the “Compensation Warrants”) equal to 6.0% of the t...