Business
Sierra Madre Announces Closing of $10.3 Million Private Placement of Common Shares and Subscription Receipts
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICESOR FOR DISSEMINATION IN THE UNITED STATES ...
About this update from Sierra Madre Gold & Silver Ltd.
[{"type":"text","content":"Sierra Madre Announces Closing of $10.3 Million Private Placement of Common Shares and Subscription ReceiptsNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICESOR FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / May 31, 2023 / Sierra MadreGold and SilverLtd. (TSXV:SM) (\"Sierra Madre\" or the \"Company\") is pleased to announce that it has closed the second tranche (the \"Second Tranche\") of its previously announced \"best efforts\" brokered private placement financing (the \"Private Placement\") in connection with the Company's acquisition of the La Guitarra silver-gold mine (the \"La Guitarra Property\") from First Majestic Silver Corp.The Private Placement was led by Beacon Securities Limited and Canaccord Genuity Corp. (together, the \"Co-Lead Agents\") on behalf of a syndicateof agents includingHaywood Securities Inc. (together with the Co-Lead Agents, the \"Agents\").The Second Tranche is comprised of: (i) 1,300,000 common shares of the Company (each, a \"Common Share\") at a price of $0.65per Common Share for gross proceeds of $845,000; and (ii) 5,123,092 subscription receipts (each, a \"Subscription Receipt\") at a price of $0.65 per Subscription receipt for gross proceeds of $3,330,010 (the \"Subscription Receipt Proceeds\"), for aggregate gross proceeds under the Second Tranche of $4,175,010. Together with the first tranche, the Private Placement raised aggregate gross proceed of $10,353,030.55.Each Subscription Receipt shall, without the payment of any additional consideration, automatically convert into one Common Share upon the earlier of: (i) the holder of the Subscription Receipt receiving written notice from the Company of conversion; or (ii) September 15, 2023 (together, the \"Escrow Release Conditions\"). The Subscription Receipt Proceeds were placed into escrow and will be released to the Company upon satisfaction of the Escrow Release Conditions. However, in the event that the Company provides written notice to the holders of Subscription Receipts of termination, then all of the issued and outstanding Subscription Receipts will be cancelled and the Escrowed Proceeds will be used to pay holders of Subscription Receipts an amount equal to $0.65 per Subscription Receipt held plus all interest accrued (as described below), less any tax required to be deducted and/or withheld (\"Termination\"...