By Devika Patel
Knoxville, Tenn., Jan. 8 - 540 Capital Corp. announced it plans a C$2.35 million private placement of units.
The company will sell up to 3 million units at C$0.45 apiece for C$1.35 million. Each unit consists of one common share and one warrant. The warrants are exercisable at C$0.60 for 18 months.
540 Capital also will sell up to 2 million flow-through shares at C$0.50 per share for C$1 million.
Canaccord Capital Corp. is the agent and will be paid an 8% cash commission along with a broker's warrant to buy a number of common shares equal to 10% of the units and shares sold, which is exercisable at $0.45 for 18 months.
540 Capital is a Calgary, Alta.-based capital pool company.
| Issuer: | 540 Capital Corp.
|
| Issue: | Units of one common share and one warrant, flow-through shares
|
| Amount: | C$2.35 million
|
| Agent: | Canaccord Capital Corp.
|
| Fees: | 8% in cash, 10% in common shares
|
| Pricing date: | Jan. 8
|
| Stock symbol: | TSX Venture: FA.P
|
| Stock price: | C$0.58 at close Jan. 8
|
|
|
| Units
|
| Amount: | C$1.35 million
|
| Units: | 3 million
|
| Price: | C$0.45
|
| Warrants: | One per unit
|
| Warrant expiration: | 18 months
|
| Warrant strike price: | C$0.60
|
|
|
| Shares
|
| Amount: | C$1 million
|
| Shares: | 2 million
|
| Price: | C$0.50
|
| Warrants: | No
|
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