Business
Private Placement Completed - Sprott invests $9 million
(via TheNewswire) August 7, 2020 - TheNewswire - Vancouver, BC - Teuton Res...
About this update from Teuton Resources Corp.
[{"type":"text","content":"Private Placement Completed - Sprott invests $9 million(via TheNewswire)\n \n \n \n\n\n\n \nAugust 7, 2020 - TheNewswire - Vancouver, BC - Teuton Resources Corp. (\"Teuton\" or \"the Company\") (TSXV:TUO) (Frankfurt:TUC) announces that it has completed a non-brokered private placement of 3,000,000 shares at a price of $3.00 per share for gross proceeds of $9,000,000. All securities issued pursuant to the private placement are subject to a statutory four-month hold period. The private placement was approved by the TSX-V on July 31, 2020, subject to satisfactory closing. There are no finder's fees or other commissions associated with the transaction. The proceeds of the financing will be used to explore the Company's many properties in the Golden Triangle region of northwestern British Columbia, to invest in acquiring new resource opportunities within the Golden Triangle, and for general working capital.\n\n \n \nEric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 3,000,000 shares pursuant to the private placement (no warrants were acquired). After closing of the private placement, Mr. Sprott now beneficially owns or controls 9,640,000 shares and 3,500,000 pre-existing, share purchase warrants representing approximately 19.3% on a non-diluted basis and 24.6% on a partially diluted basis assuming exercise of all pre-existing warrants. Prior to the Offering, Mr. Sprott beneficially owned or controlled 6,640,000 common shares and 3,500,000 share purchase warrants. Mr. Sprott has signed an undertaking not to exercise his warrants until such time as the Company can obtain shareholder approval (from disinterested shareholders) of the new control person which will be created once Mr. Sprott passes 20% ownership; the Company has agreed to call a shareholders' annual general meeting prior to Oct. 15, 2020 at which such approval will be sought. Mr. Sprott has also signed a Support Agreement with the Company in regard to a merger, take-over bid, amalgamation, plan of arrangement, business combination or similar transaction which may arise over the next two years.\n\n \n \nThe shares were acquired by Mr. Sprott, through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company including on the open marke...