Volcanic Announces $5 Million Bought Deal Offering

Nachrichtenquelle: globenewswire
28.09.2020, 22:29  |  117   |   |   

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

VANCOUVER, British Columbia, Sept. 28, 2020 (GLOBE NEWSWIRE) -- Volcanic Gold Mines Inc. (TSXV: VG), (“Volcanic” or the “Company”) is pleased to announce that it has entered into an agreement with Haywood Securities Inc. to act as lead underwriter, on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 9,100,000 units of the Company (the “Units”), at a price of C$0.55 per Unit (the “Offering Price”) for gross proceeds to the Company of C$5,005,000 (the “Offering”).

Each Unit will consist of one common share in the capital of the Company (a “Common Share”) and one half of one Common Share purchase warrant (a “Warrant”). Each whole Warrant will entitle the holder thereof to purchase one Common Share (a “Warrant Share”) at a price of C$0.70 for a period of 18 months following the Closing Date (as defined below).

The Company will pay the Underwriters a cash commission of 6.0% of the gross proceeds of the Offering, subject to a reduced cash commission being payable on sales to certain members of the president’s list (the “Presidents List Sales”) and will issue to the Underwriters broker warrants (the “Broker Warrants”) exercisable at any time prior to the date that is 24 months after the Closing Date at a price of C$0.55 per Broker Warrant to purchase such number of units (the “Broker Units”) as is equal to 6% (reduced in the case of President’s List Sales) of the aggregate number of Units issued pursuant to the Offering, including on any proceeds realized on the exercise of the Over-Allotment Option. Each Broker Unit will be comprised of one Common Share (each, a “Broker Share”) and one-half of one Common Share purchase warrant (each whole common share purchase warrant, an “Underlying Broker Warrant”).

In addition, Silvercorp Metals Inc. may exercise its right to maintain their 19.9% pro rata interest in the outstanding shares of the Company by participating in the Offering, or by purchasing in a concurrent private placement, Units at the Offering Price which will increase the gross proceeds to the Company.

The Underwriters have been granted an option (the “Over-Allotment Option”), exercisable in whole or in part, at any time within 48 hours prior to the Closing Date (as defined herein), to purchase from the Company up to an additional 15% of the Units offered under the Offering.

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