CR Capital Corp. Increases Previously Announced Private Placement to C$700,000
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
TORONTO, July 03, 2020 (GLOBE NEWSWIRE) -- CR Capital Corp. (TSX-V / CIT) ("CR Capital" or the "Company") wishes to announce an increase in the size of the proposed non-brokered private placement of a combination of flow-through units (“FT Units”) and hard-dollar units (“HD Units”) (the “Offering”) announced in the Company’s July 2, 2020 news release. The Offering will consist of the sale of up to $500,000 worth of HD Units offered at C$0.08 per HD Unit, as announced on July 2, 2020, and will also include an additional flow-through component consisting of the sale of up to $200,000 worth of FT Units offered at C$0.10 per FT Unit. The Company will have the option to further increase the size of the flow-through component of the Offering by up to an additional $300,000 worth of FT Units.
Each FT Unit will be comprised of one (1) common share of the Company that qualifies as a “flow-through common share” (a “FT Share”), and one-half of one (0.5) common share purchase warrant (each whole warrant, a “FT Warrant”), with each FT Warrant entitling the holder thereof to acquire one additional common share of the Company at a price of $0.125 for a period of eighteen (18) months following the closing of the Offering. Each HD Unit will be comprised of one (1) common share of the Company and one (1) common share purchase warrant (each a “Warrant”), with each Warrant entitling the holder thereof to acquire one additional common share of the Company at a price of $0.10 for a period of eighteen (18) months following the closing of the Offering.
The proceeds from the sale of the HD Units will be used for exploration and general working capital purposes. The proceeds from the issuance of the FT Units will be used for “Canadian exploration expenses” and will qualify as "flow-through mining expenditures" (the "Qualifying Expenditures"), as defined in subsection 127(9) of the Income Tax Act (Canada). The Company intends to renounce the Qualifying Expenditures to subscribers of FT Units for the fiscal year ended December 31, 2020.
The Offering is still expected to close on or about July 14, 2020 and is subject to receipt of all necessary regulatory approvals, including approval of the TSX Venture Exchange. The securities issued pursuant to the Offering will be subject to a statutory hold period of four months and one day in accordance with applicable securities laws.