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Rio2 Limited Announces C$17.5 Million Bought Deal Private Placement Led by a C$9.2 Million Investment from Eric Sprott
Rio2 Limited Announces C$17.5 Million Bought Deal Private Placement Led by a C$9.2 Million...
About this update from Rio2 Limited
[{"type":"text","content":"\n\n\n\n\nRio2 Limited Announces C$17.5 Million Bought Deal Private Placement Led by a C$9.2 Million Investment from Eric Sprott\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, July 23, 2019\n\n\n\n/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n(IN CANADIAN DOLLARS UNLESS OTHERWISE STATED)\n VANCOUVER, July 23, 2019 /CNW/ - Rio2 Limited (\"Rio2\" or the \"Company\") (TSXV: RIO; OTCQX: RIOFF; BVL: RIO) announces that it has entered into an agreement with Cormark Securities Inc. (\"Cormark\"), pursuant to which Cormark shall purchase 43,750,000 units of the Company (the \"Units\") at a price of $0.40 per Unit, on a \"bought deal\" private placement basis, for aggregate gross proceeds to the Company of approximately $17.5 million (the \"Offering\"). \nEach Unit will consist of one common share of the Company (a \"Common Share\") and one-half of one Common Share Purchase Warrant (each full warrant, a \"Warrant\"). Each Warrant will entitle the holder to acquire one Common Share of the Company at an exercise price of $0.50 for a period of 36 months following the closing of the Offering.\nThe Company has also granted Cormark an option to sell up to an additional 6,562,500 Units at the offering price up to the Closing Date (the \"Option\").  In the event that the Option is exercised in its entirety, the aggregate gross proceeds of the Offering will be $20.1 million.\nThe Company also announces that Eric Sprott has agreed to purchase $9.2 million of the Offering. On completion of the Offering, Eric Sprott will own 19.9% of the issued and outstanding shares of the Company on a partially diluted basis (excludes potential shares issued from the Option).\nThe Offering is scheduled to close on or about August 13, 2019 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the TSX Venture Exchange.\nAlex Black, President and Chief Executive Offic...