DGAP-News
Royal Road Minerals Closes C$3.6 Million Brokered Private Placement Financing
DGAP-News: Royal Road Minerals Limited / Key word(s): Miscellaneous
Toronto, Ontario--(Newsfile Corp. - February 17, 2017) - Royal Road |
The Company issued an aggregate of 36,000,000 units (each a 'Unit') of the
Company, with each Unit comprised of one ordinary share of the Company and
one-half of one ordinary share purchase warrant (each whole warrant, a
'Warrant'), at a price of C$0.10 per Unit for total aggregate gross
proceeds of C$3.6 million (the 'Offering'). Each Warrant will entitle the
holder thereof to acquire one ordinary share of the Company at a price
C$0.20 until February 17, 2019.
The Company (i) paid a total cash commission to the Agents equal to 6.0% of
the gross proceeds of the Offering, and (ii) issued broker warrants (the
'Broker Warrants') equal to 6.0% of the securities sold pursuant to the
Offering. Each Broker Warrant entitles the holder to acquire one ordinary
share of the Company at a price of $0.10 until February 17, 2019.
The Offering constituted a related party transaction within the meaning of
TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 ('MI
61-101') as insiders of the Company subscribed for an aggregate of 600,000
Units. The Company is relying on the exemptions from the valuation and
minority shareholder approval requirements of MI 61-101 contained in
sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the
participation in the Offering by insiders does not exceed 25% of the market
capitalization of the Company, as determined in accordance with MI 61-101.