Sego Resources arranges $65,000 private placement

Oct 22, 2015

SEGO PROPOSES $65,000 PRIVATE PLACEMENT

Sego Resources Inc. is proposing to raise up to $65,000 by way of a non-brokered private placement of units of the company at a price of two cents. Subject to certain limitations discussed as follows, the offering is open to all existing Sego shareholders. The offering will require a discretionary pricing waiver in order to close the private placement from the TSX Venture Exchange.

The offering will consist of 3.25 million units at a price of two cents per unit for gross proceeds of $65,000. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder to purchase one share at a price of five cents for a period of two years. The offering is open to all existing shareholders of the company and all interested investors, provided that a prospectus exemption is available for the company to issue units to such investors. For existing shareholders who, as of the close of business on Oct. 20, 2015, held common shares of the company and continue to hold common shares at the time of closing, an additional prospectus exemption is available pursuant to British Columbia Instrument 45-534 (and in similar instruments in other provinces of Canada). Unless such shareholder is a person that has obtained advice regarding the suitability of the investment and, if such shareholder is resident in a jurisdiction of Canada, that advice has been obtained from a person that is registered as an investment dealer in such jurisdiction, the total subscription cost to such shareholder for the units subscribed under the existing shareholder exemption cannot exceed $15,000 (750,000 units). Completion of the private placement is subject to the TSX Venture Exchange approval. There is no minimum offering size for the placement.

Insiders may participate in the placement and finders’ fees may be payable, in accordance with the policies of the TSX Venture Exchange. All securities issued in connection with the private placement are subject to a four-month-and-one-day hold period in accordance with applicable Canadian securities laws.

Funds raised are for payment of some outstanding debt and working capital. The use of proceeds will include audit fees ($21,000), some outstanding legal fees ($15,000), filing fees (approximately $5,000), costs associated with the annual general meeting and transfer agent ($5,000), financial reporting ($10,000), exchange fees (approximately $5,000), and continuing office expenses ($4,000). The company fully expects to spend the funds as stated; there may be circumstances, for sound business reasons, where a reallocation of funds may be necessary.

http://www.segoresources.com/newsnew.html