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RJK Explorations Announces Initial Closing of Previously Announced Non-Brokered Private Placement
Kirkland Lake, Ontario--(Newsfile Corp. - December 23, 2019) - RJK Explorations Ltd. ( TSXV: R...
About this update from Rjk Explorations Ltd. Class A
[{"type":"text","content":"RJK Explorations Announces Initial Closing of Previously Announced Non-Brokered Private PlacementKirkland Lake, Ontario--(Newsfile Corp. - December 23, 2019) - RJK Explorations Ltd. (TSXV: RJX.A) (\"RJK\" or the \"Company\") is pleased to announce that it has closed the first tranche of the non-brokered private placement offering (the \"Class C Offering\") of units (\"Units\") and the entirety of the concurrent non-brokered private placement offering (the \"FT Offering\") of flow-through units (\"FT Units\"). Pursuant to this initial closing, the Company raised a total of $850,000 for the issuance of 5,600,000 Units of the Company at a price of $0.125 per Unit and 1,200,000 FT Units at a price of $0.125 per FT Unit (the \"Initial Closing\").Each Unit consists of one convertible Series 1 Class C Preference Share (a \"Royalty Share\"), and one share purchase warrant (a \"Warrant\") exercisable for one Class A Subordinate Voting Share of the Company (a \"Class A Share\"). The purchasers of the Units (the \"Royalty Share Purchasers\") have all entered into an agreement with the Company dated effective as of the Initial Closing (the \"Royalty Shareholders Agreement\") pursuant to which the Company has granted the Royalty Share Purchasers the option to purchase a 2.5% gross overriding royalty on the Company's Bishop claims subject to the publication by the Company of a \"bankable\" feasibility study on the Bishop claims. Pursuant to the terms of the Royalty Shares and the Royalty Shareholders Agreement, the Royalty Shares include a voluntary conversion right with 25% of each Royalty Share Purchaser's Royalty Shares being convertible into Class A Shares beginning six (6) months after the Initial Closing, an additional 25% being convertible into Class A Shares beginning twelve (12) months after the Initial Closing, an additional 25% being convertible into Class A Shares beginning eighteen (18) months after the Initial Closing and the remaining 25% being convertible into Class A Shares beginning twenty-four (24) months after the Initial Closing. The voluntary conversion period for all Royalty Shares ends five (5) years after the Initial Closing. Each Royalty Share shall be a voting share. Each FT Unit consists of one Class A Share issued on a \"flow-through\" basis (an \"FT Share\") and one Warrant. Each Warrant entitles the holder to ac...