| | | RG responded to your question Keyman with the detail. Short answer is the acceleration clauses attached to the warrants that were issued with the PP shares.
The company issued 2,338,893 Units at a price of $1.06 per Unit (the “Offering”) for gross proceeds of $2,479,227.
That means that 1,169,446.5 warrants were issued with a strike price of $1.50 and an additional 1,169,446.5 warrants were issued with a strike price of $2.00.
Therefore, the company stands to gain an additional (1,169,446.5 X $1.5) = $1,754,169.7 if shareholders exercise those warrants. The company has included an acceleration clause, which allows it to force warrant holders to exercise them.
Further, the company stands to gain an additional (1,169,446.5 X $2.00) = $2,338,893 if shareholders exercise those warrants. The company has included an acceleration clause, which allows it to force warrant holders to exercise them.
So if the share price drivers I mentioned in post Zentek Ltd. Message Board - Msg: 35327688 can get our share price above $2 and sustain that price then the company coffers could further benefit with the exercise of these warrants to the tune of $1,754,169 + $2,338,893 = $4.093 m.
VH |
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