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New Energy Metals Announces Completion of Non-Brokered Private Placement
Vancouver, British Columbia--(Newsfile Corp. - March 11, 2021) -   New Energy Metals Corp...
About this update from New Energy Metals Corp.
[{"type":"text","content":"New Energy Metals Announces Completion of Non-Brokered Private PlacementVancouver, British Columbia--(Newsfile Corp. - March 11, 2021) -  New Energy Metals Corp. (TSXV: ENRG) (OTC Pink: NEMCF) (the \"Company\") is pleased to confirm the closing of the Company's non-brokered private placement financing as previously announced on February 8, 2020 (the \"Offering\"). On March 5, 2021, the Company issued 1,600,000 units (the \"Units\") at a price of $0.06 per Unit for gross proceeds of $96,000, with each Unit consisting of one common share in the capital of the Company and one common share purchase warrant (a \"Warrant\"). Each Warrant entitles the holder thereof to purchase one common share in the capital of the Company for a period of 12 months at an exercise price of $0.08 per share, and for a further 12 months at an exercise price of $0.10 per share.Stuart Ross, the CEO and a director of the Company, and Christopher Little, a director of the Company, each invested $6,000 in the Offering in exchange for 100,000 Units. Each of these transactions constituted a \"related party transaction\" as such term is defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Company is relying on the exemptions from the formal valuation and minority approval requirements under MI 61- 101, and in particular, Sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the transactions is not more than the 25% of the Company's market capitalization.The Company did not pay any finder's fees in connection with the Offering. All securities issued in connection with the Offering are subject to a four-month and one day hold period in Canada, expiring on July 6, 2021.The Company expects to use the net proceeds from the Offering for general corporate purposes, including the settlement of certain outstanding accounts payable.None of the securities referenced in this news release have been and will not be registered under the United States Securities Act of 1933, as amended (the \"1933 Act\") or any applicable state securities laws and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) or persons in the United States absent registration or an applicable exemption from s...