Business
Q2 Metals Closes First Tranche of Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES...
About this update from Q2 Metals Corp
[{"type":"text","content":"Q2 Metals Closes First Tranche of Private PlacementNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, BC / ACCESSWIRE / August 2, 2024 / Q2 Metals Corp. (TSXV:QTWO)(OTCQB:QUEXF)(FSE:458) (\"Q2\" or the \"Company\") is pleased to announce that it has closed the first tranche (the \"First Tranche\") of the non-brokered private placement of units (the \"Offering\") of the Company as announced on July 10 and updated July 11, 2024. Under the First Tranche, the Company has issued:1,142,857 flow-through units at a price of $0.35 per unit (the \"FT Units\") for total gross proceeds of $400,000, representing an upsize of 142,857 FT Units, with each unit consisting of one flow-through common share of Q2 (a \"FT Share\") and one half of one share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant will entitle the holder to acquire one additional non-flow-through common share of Q2 at a price of $0.50 per share for a period of two years; and8,519,998 non-flow-through units at a price of $0.25 per unit (the \"NFT Units\") with each NFT Unit consisting of one non-flow-through common share of Q2 and one half of one Warrant, for total gross proceeds of $2,130,000.Gross proceeds from the issuance of the FT Units will be used to incur \"Canadian exploration expenses\" that qualify as \"flow-through critical mineral mining expenditures,\" as such terms are defined in the Income Tax Act (Canada) (the \"Tax Act\"), on Q2's lithium projects in Quebec that the Company will renounce to the subscribers pursuant to the Tax Act with an effective date not later than December 31, 2024. Where applicable, gross proceeds from the sale of the FT Units from purchasers in Québec will also qualify as \"Canadian exploration expense\" under the Taxation Act (Québec) and qualify for inclusion in the \"exploration base relating to certain Québec exploration expenses\" and the \"exploration base relating to certain Québec surface mining exploration expenses,\" under the Taxation Act (Québec). Proceeds from the sale of the NFT Units will be used for general working capital.The securities issued pursuant to this First Tranche are subject to a hold period expiring on December 1, 2024 in accordance with applicable securities laws or the Exchange Hold Period under the policies...