Company sells 56 million units with two-year warrants in upsized deal
By Devika Patel
Knoxville, Tenn., Oct. 1 - Rare Earth Metals Inc. said it raised C$100,000 in the second and final tranche of a C$2.8 million non-brokered private placement of units, which was increased from C$2.7 million. The deal priced on Sept. 7 and raised C$2.7 million on Sept. 17.
The company sold 56 million units of one common share and one half-share warrant at C$0.05 per unit. Pinetree Resource Partnership purchased the 2 million units from the second tranche, and the company sold 54 million units in the first tranche.
Each whole, two-year warrant will be exercisable at C$0.10. The strike price is a 25% premium to C$0.08, the Sept. 6 closing share price.
Canadian Horizon Capital Corp. was paid a finder's fee.
Proceeds will be used to develop the company's vertical integration strategy for the rare earth supply chain, investigate opportunities within the rare earth business sector, to assess properties and for general corporate purposes.
Rare Earth Metals is a metals explorer in Thunder Bay, Ont.
| Issuer: | Rare Earth Metals Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$2.8 million
|
| Units: | 56 million
|
| Price: | C$0.05
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
| Investor: | Pinetree Resource Partnership (for C$100,000)
|
| Pricing date: | Sept. 7
|
| Upsized: | Oct. 1
|
| Settlement dates: | Sept. 17 (for C$2.7 million), Oct. 1 (for C$100,000)
|
| Stock symbol: | TSX Venture: UGD
|
| Stock price: | C$0.08 at close Sept. 6
|
| Market capitalization: | C$10.55 million
|
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