Business
Unigold Closes Private Placement of C$4,800,000
TORONTO, ONTARIO--(Marketwired - May 25, 2016) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PE
About this update from Unigold Inc.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - May 25, 2016) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS Unigold Inc. (\"Unigold\" or the \"Company\") (TSX VENTURE:UGD) is pleased to announce that it has closed its previously announced private placement of 16,000,000 units of the Company (the \"Units\") at a price of C$0.30 per Unit for gross proceeds of C$4,800,000 (the \"Private Placement\"). Each Unit consists of one common share of the Company (a \"Unit Share\") and one common share purchase warrant (a \"Warrant\"). Each Warrant entitles the holder thereof to purchase one common share of the Company (a \"Warrant Share\" and together with the Units, Unit Shares, and Warrants, the \"Securities\") at an exercise price of C$0.45 at any time prior to May 25, 2018. The Company has the right to accelerate the expiry date of the Warrants on notice to the holders of Warrants if the closing price of the Company's common shares on a stock exchange in Canada is higher than C$0.90 per common share for more than 20 consecutive trading days at any time after September 26, 2016, in which case the Warrants will expire 30 days after the date on which such notice is given. In connection with the closing of the Private Placement, the Company issued an aggregate of 1,120,000 broker units (the \"Broker Units\") and paid an aggregate of $343,324 in cash to M Partners Inc. and Primary Capital Inc. (collectively, the \"Agents\"). Each Broker Unit entitles the holder thereof to purchase one unit of the Company until May 25, 2018 at an exercise price of C$0.30 per unit. Each unit consists of one common share of the Company and one common share purchase warrant of the Company having the same terms as the Warrants. The Securities, the Broker Units and the securities issuable upon the exercise of the Broker Units are subject to a four month hold period which will expire September 26, 2016. Osisko Gold Royalties Ltd. (\"Osisko\") subscribed for a total of 1,628,000 Units pursuant to the Private Placement. Osisko, which is an insider and a \"related party\" of the Company (within the meaning of MI 61-101), now beneficially owns, or exercises control or direction over, 6,728,000 common shares of the Company (or, approximately 14.8% of the issued and outstanding common shares of the Company). Addit...