Business
Zentek Announces Agreement to Transfer Albany Graphite Project to Subsidiary and Intention of Albany Graphite Corp. to Complete a Private Placement Financing
GUELPH, ON / ACCESSWIRE / April 25, 2023 / Zentek Ltd. (" Zentek " or the " Company ") (Nasdaq:Z...
About this update from Zentek Ltd.
[{"type":"text","content":"Zentek Announces Agreement to Transfer Albany Graphite Project to Subsidiary and Intention of Albany Graphite Corp. to Complete a Private Placement FinancingGUELPH, ON / ACCESSWIRE / April 25, 2023 / Zentek Ltd. (\"Zentek\" or the \"Company\") (Nasdaq:ZTEK)(TSXV:ZEN), a graphene technology development and commercialization company is pleased to announce the execution of a property purchase agreement (the \"Agreement\") with its recently incorporated and currently wholly-owned subsidiary Albany Graphite Corp. (\"Albany\") to transfer the Albany Graphite Project, and the intention of Albany to complete a non-brokered private placement financing (the \"Offering\").The Agreement:Pursuant to the terms of the Agreement, Zentek intends to transfer to Albany the ownership of the Albany Graphite Project, including the mining claims and all related chattel, drill core, and applicable contracts, in consideration for the issuance by Albany to Zentek of 59,999,900 common shares of Albany. Completion of the property transfer is subject to standard closing conditions such as receipt of all required regulatory and third-party approvals (including the approval of the TSX Venture Exchange).The Offering:Albany intends to raise proceeds by way of a non-brokered private placement financing, through the issuance of subscription receipts of Albany (each a \"Subscription Receipt\") at a price of $1.00 per Subscription Receipt. Each Subscription Receipt will automatically convert into one common share in the capital of Albany and one-half of one common share purchase warrant upon the satisfaction or waiver of all conditions precedent to a transaction that would result in a listing on a recognized Canadian stock exchange (the \"Release Conditions\"). Each whole warrant will be exercisable for one common share at a price of $1.20 for a period of (2) years, provided that in the event that the closing price of the underlying common shares trading on a recognized Canadian stock exchange exceeds $3.00 for ten consecutive trading days, the Company may accelerate the expiry of the Warrants to a date that is 30 days following the issuance of a press release providing notice of such acceleration.Funds raised pursuant to the Offering shall be held in escrow pending satisfaction of the Release Conditions, at which time such funds would be released to Albany, which ...