The private placement offering is for a minimum 2,000,000 units (the “Units”) of the Company at a price of $0.25 per Unit (the “Offering”), with each Unit comprised of one share and one transferrable share purchase warrant (a “Warrant”). Each transferrable warrant will be exercisable to purchase an additional share of the Company for a period of 24 months from the closing date at a price of CAD$0.30.
The net proceeds of the Offering will be used to fund the acquisition of a portfolio of battery metal projects in Idaho, USA and Quebec Canada as well as for business development and working capital purposes.
GEMC is utilizing Deal Maker to streamline the management and paperwork of our previously announced private placement financing and to facilitate the ability of investors to participate in the private placement.
Click this link to access our page on Deal Maker for more information on the financing, and how to register as a qualified investor and participate in the financing. The investor qualification process and all necessary documents are handled electronically by an online investment platform via the Stockhouse Deal Room. For further information on this financing, please contact our management team using the details below.
The Company has agreed to and may pay a finder’s fee of 8% cash and 8% broker warrants for Units sold to certain investors (“Broker Warrants”). Each Broker Warrant entitles the holder to acquire one common share of the Company at a strike price of $0.30 for a period of one year from the date of issuance. Warrants are subject to an acceleration clause whereby if on any 10 consecutive trading days occurring after four months and one day has elapsed from the closing date, the daily volume weighted average trading price of the common shares of the Company is at least $0.50 per share, the Company may accelerate the expiry date of the warrants to the 30th day after the date on which the Company gives notice to the subscriber in accordance with the warrant of such acceleration.
All securities to be issued pursuant to the Offering will be subject to a four month hold period from the closing date under applicable securities laws in Canada and among other things, receipt by Global Energy Metals of all necessary regulatory approvals, including the TSX Venture Exchange.
The securities issued in connection with the Offering have not been nor will they be registered under the United States Securities Act of 1933, as amended, or state securities laws, and may not be offered or sold in the United States or to an account for the benefit of US persons, absent such registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, sale, or solicitation would be unlawful.