Two-year warrants exercisable at 29% premium to Tuesday's share price
By Angela McDaniels
Tacoma, Wash., March 19 - Transition Metals Corp. plans to raise up to C$1.7 million through a non-brokered private placement of up to 5,666,666 units at a price of C$0.30 per unit.
Each unit will consist of one common share and one two-year transferable warrant, according to a company news release.
The warrant strike price is C$0.40, which is a 29% premium to the company's C$0.31 closing share price on March 18.
Beginning four months after the closing date, the company can accelerate the expiry date of the warrants if its closing share price is higher than C$0.60 for 20 consecutive trading days.
A finder's fee may be paid to finders, including affiliates of Sprott Inc. 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 that finder and two-year non-transferable warrants equal to 7% of the units sold . The warrant strike price will be C$0.30.
Sudbury, Ont.-based Transition acquires and explores mineral properties.
| Issuer: | Transition Metals Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | UP to C$1.7 million
|
| Units: | Up to 5,666,666
|
| Price: | C$0.30
|
| Warrants: | One per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.40
|
| Agent: | Non-brokered
|
| Pricing date: | March 19
|
| Stock symbol: | TSX Venture: XTM
|
| Stock price: | C$0.31 at close March 18
|
| Market capitalization: | C$8 million
|
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