Transition Metals (XTM-V) arranges up to $1.7-million financing, affiliates of Sprott
March 19, '14 - NR
Transition Metals Corp. intends to raise up to $1.7-million by way of a non-brokered private placement financing consisting of up to 5,666,666 units at a price of 30 cents per unit, for gross proceeds of up to $1.7-million. Each Unit will consist of one common share of the Company (each, a "Common Share") and one transferable share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to purchase one additional Common Share for a period of two years, at a price of $0.40. If, commencing on the date that is four months after the closing date, the closing price of the Common Shares on the TSX Venture Exchange (the "Exchange") is higher than $0.60 for 20 consecutive trading days (the "Acceleration Trigger Date"), then, provided the Company issues a news release announcing the acceleration of the expiry date and delivers or sends by electronic transmission a copy of such news release to the Warrant holders and the finders within three days of the Acceleration Trigger Date, the expiry date of the Warrants will be accelerated to the date that is 20 trading days after the issue of such news release.
A finder's fee may be paid in connection with the placement to finders, including affiliates of Sprott Inc., as determined by mutual agreement between the Company and the finders and subject to regulatory approval. The finders' fee will consist of cash or Units, at the election of each finder, equal to 7% of the Units sold to investors introduced by such finder, and non-transferable share purchase warrants equal to 7% of such Units sold to investors ("Compensation Warrants"). The Compensation Warrants will permit the purchase of one Common Share for two years at a price of $0.30.
The securities issued in connection with the private placement will be subject to a four month restricted resale period and applicable securities legislation hold periods outside of Canada. Completion of the private placement will be subject to all necessary approvals, including the approval of the Exchange. There can be no assurance that the private placement will be completed as proposed or at all. |
