Azincourt arranges $7.6-million private placement
2021-09-22 14:49 ET – News Release
Mr. Alex Klenman reports
AZINCOURT ENERGY ANNOUNCES FULLY SUBSCRIBED C$7.6 MILLION NON-BROKERED PRIVATE PLACEMENT
Azincourt Energy Corp. has arranged a fully subscribed non-brokered private placement for aggregate gross proceeds to the company of approximately $7.6-million from the sale of the following:
- Units of the company at a price of seven cents per unit;
- Flow-through units of the company at a price of 7.5 cents per FT unit;
- FT units to be sold to charitable buyers at a price of 9.3 cents per charity FT unit.
Red Cloud Securities Inc. is acting as a finder in connection with the offering and the majority of the financing is being placed with institutional investors.
Each unit will comprise one common share of the company and one common share purchase warrant. Each FT unit and charity FT unit will consist of one common share of the company to be issued as a flow-through share within the meaning of the Income Tax Act (Canada) and one warrant. Each warrant will entitle the holder thereof to purchase one common share of the company at a price of 10 cents for a period of 36 months following the closing date of the offering.
The gross proceeds from the issuance of the FT shares will be used for Canadian exploration expenses (within the meaning of the Income Tax Act (Canada)), which will be renounced with an effective date no later than Dec. 31, 2021, to the purchasers of the FT shares in an aggregate amount not less than the gross proceeds raised from the issue of the FT shares. If the qualifying expenditures are reduced by the Canada Revenue Agency, the company will indemnify each subscriber of FT shares for any additional taxes payable by such subscriber as a result of the company’s failure to renounce the qualifying expenditures. It is expected that expenditures will largely be focused on the continued development of the East Preston uranium project located in the western Athabasca basin in Saskatchewan, Canada.
The net proceeds from the sale of units will be used for working capital and general corporate purposes.
The closing of the offering is expected to occur on or about Sept. 29, 2021, and is subject to receipt of all necessary regulatory approvals, including the TSX Venture Exchange. Finder’s fees will be payable in accordance with the policies of the TSX Venture Exchange. All securities issuable in connection with the offering will be subject to a hold period of four months and one day in accordance with applicable securities laws.
Azincourt engages Red Cloud to provide market stabilization and liquidity services
Subject to regulatory approval, Azincourt has retained Red Cloud Securities to provide its market stabilization and liquidity services to the company in compliance with the policies and guidelines of the TSX Venture Exchange and other applicable legislation.
Red Cloud will trade shares of the company on the TSX-V for the purposes of maintaining a reasonable market and improving the liquidity of Azincourt’s common shares. The agreement between Red Cloud and the company may be terminated by either party with written notice of 30 days. The company has agreed to pay Red Cloud $5,000 per month during the term, payable quarterly in advance. The company and Red Cloud act at arm’s length, but Red Cloud may provide investment banking or other services to the company, and Red Cloud and/or its clients may have an interest, directly or indirectly, in the securities of Azincourt. The agreement is principally for the purposes of maintaining market stability and liquidity for the company’s common shares and is not a formal market making agreement. There are no performance factors contained in the agreement between Red Cloud and the company, and Red Cloud will not receive any shares or options from the company as compensation for services it will render.
About Azincourt Energy Corp.
Azincourt Energy is a Canadian-based resource company specializing in the strategic acquisition, exploration and development of alternative energy/fuel projects, including uranium, lithium and other critical clean energy elements. The company is currently active at its majority-owned East Preston uranium project in the western Athabasca basin, Saskatchewan, Canada, and the Escalera Group uranium-lithium project located on the Picotani plateau in southeastern Peru.
We seek Safe Harbor.
Related Posts
Tags
Share This
