Major General agrees to offer 2.4 million units
Major General Resources Ltd MGJ
Shares issued 38,152,643 Jun 30 close $0.25
Fri 2 Jul 99 News Release
Mr. Glenn Shevchenko reports
The company has agreed to offer 2.4 million units of securities at an offering price of 25 cents per unit. Each unit will consist of one common share in the capital of the company and one warrant. Two warrants will entitle the holder to acquire one additional common share exercisable for a period of one year from the offering day at a price of 28 cents per common shares.
The units will be offered pursuant to an agency agreement dated for
reference June 8, 1999, between Canaccord Capital Corporation and the
company. The agent will be paid a fee in cash or at the option of the agent, in common shares, equal to 7 per cent of the value of the number of units sold. The agent will also receive as a bonus, warrants entitling the agent to purchase up to 480,000 common shares. The agent's warrants will be exercisable on the same terms as the warrants. The offering will be made pursuant to a short form offering document as permitted by BOR No. 99/2 issued by the British Columbia Securities Commission and the policies of the Vancouver Stock Exchange on a day determined by the agent and the company with the consent of the exchange within a period of 30 days from the date the short form offering document is accepted for filing by the exchange. The units will be offered to residents of British Columbia on a commercially reasonable effort basis subject to prior sale, if, as and when accepted by the company and issued by the company in accordance with the terms and conditions contained within the agency agreement.
The short form offering document is an exchange document, which allows the company to undertake a public offering without preparing a prospectus while allowing eligible investors to receive free-trading securities. Warrants issued to purchasers who are eligible to receive free-trading securities will be listed and called for trading on the exchange subject to minimum distribution requirements of the exchange being met. At May 31, 1999, the company had a working capital of $327,345. The company will realize $558,000 (net of agent's fee) from the proceeds of the offering which, together with working capital, will be used to pay the $25,000 estimated cost of the offering, with the balance being applied to working capital to financing continuing operations.
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