Business
Velocity Closes $1.5 Million Non-Brokered Private Placement
Vancouver, British Columbia--(Newsfile Corp. - March 29, 2023) - Velocity Minerals Ltd. (TSXV: VL...
About this update from Velocity Minerals Ltd.
[{"type":"text","content":"Velocity Closes $1.5 Million Non-Brokered Private PlacementVancouver, British Columbia--(Newsfile Corp. - March 29, 2023) - Velocity Minerals Ltd. (TSXV: VLC) (\"Velocity\" or the \"Company\") has closed its previously announced non-brokered private placement (the \"Financing\") by the issuance of 10,000,000 units of the Company (the \"Units\") priced at $0.15 per Unit for total gross proceeds of $1,500,000. Each Unit consists of one common share in the capital of the Company (each, a \"Share\") and one-half of one common share purchase warrant (each whole warrant, a \"Warrant\"), with each Warrant entitling the holder thereof to purchase one Share at a price of $0.25 per Share for a period of 18 months.The proceeds of the Financing are intended to fund ongoing work at the Company's gold and copper exploration projects and for general working capital. In connection with the Financing, the Company paid finder's fees consisting of $28,000 in cash and issued 186,666 non-transferable finder's warrants (each, a \"Finder's Warrant\"). Each Finder's Warrant entitles the holder thereof to purchase one Share at a price of $0.15 per Share for a period of 12 months. Haywood Securities Inc. and Leede Jones Gable Inc. each received $14,000 in cash and 93,333 Finder's Warrants. All securities issued in connection with the Financing are subject to a hold period ending on July 29, 2023. The Financing is subject to final approval of the TSX Venture Exchange (\"TSXV\").An insider of the Company subscribed for 2,716,470 Units. Such participation is considered to be a \"related party transaction\" as defined under Multilateral Instrument 61-101 (\"MI 61-101\"). The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Financing by the insider does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101.This news release does not constitute an offer of sale of any of the foregoing securities in the United States. None of the foregoing securities have been and will not be registered under the U.S. Securities Act of 1933, as amended (the \"1933 Act\") or any applicable state securities laws and may not be offered or sold in the United S...