Oversubscribed sale of equity funds exploitation permit application
By Devika Patel
Knoxville, Tenn., April 29 - True North Gems Inc. said it settled a C$615,000 tranche of an oversubscribed non-brokered private placement of units. The offering priced for C$3 million on April 12 and was increased to C$3.5 million on April 26, when the company settled an initial C$2.77 million tranche.
The company is selling 35 million units at C$0.10 apiece. It sold 27,676,000 units in the first closing and 6.15 million units in this tranche. Each unit consists of one common share and one half-share warrant, with each whole two-year warrant exercisable at C$0.15 in the first year and at C$0.20 in the second. The strike prices are 20% and 60% premiums to the April 11 closing share price of C$0.125.
Proceeds will be used to advance the exploitation permit application process with the Greenland government, for seasonal exploration work and for general working capital and other corporate purposes.
True North is a gemstone exploration company based in Vancouver, B.C.
| Issuer: | True North Gems Inc.
|
| Issue: | Units of one common share and one half-share warrant
|
| Amount: | C$3.5 million
|
| Units: | 35 million
|
| Price: | C$0.10
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.15 in the first year, C$0.20 in the second
|
| Agent: | Non-brokered
|
| Pricing date: | April 12
|
| Upsized: | April 26
|
| Settlement date: | April 26 (for C$2,767,600), April 29 (for C$615,000)
|
| Stock symbol: | TSX Venture: TGX
|
| Stock price: | C$0.12 at close April 12
|
| Market capitalization: | C$12.03 million
|
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