Collingwood Closes Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES VANCOUVER, BC / ACCESSWIRE / October 11, 2024 / Collingwood Resources Corporation (TSXV:COLL.P) (the "Company") is pleased to announce the closing of …
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
VANCOUVER, BC / ACCESSWIRE / October 11, 2024 / Collingwood Resources Corporation (TSXV:COLL.P) (the "Company") is pleased to announce the closing of its previously announced private placement, on September 9, 2024, (the "Private Placement") of a total of 2,400,000 common shares at a price of $0.10 per common share ("Shares") for gross proceeds of $240,000.
In connection with the closing, the Company paid cash finder's fees in the amount of $14,100 to an arm's length finder (the "Finder") representing 6% of the proceeds received from subscribers introduced to the Company by the Finder. The net proceeds of the Private Placement will be used to evaluate the potential acquisition of exploration projects to serve as the Company's "Qualifying Transaction" under TSX Venture Exchange (the "Exchange") policies and for general working capital purposes.
Two subscribers to the Private Placement subscribing for an aggregate of 320,000 Shares (the "Related Shares") are directors of the Company, and, as a result, the Private Placement constitutes a "related party transaction" under the policies of the Exchange and Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to the related party transactions under Sections 5.7(b) and 5.5(b), respectively, of MI 61-101. There has been no prior formal valuation of the Shares issued as there has not been any necessity to do so. The Private Placement has been reviewed and unanimously approval by the Company's board of directors, including the independent directors.
All Shares issued pursuant to this Private Placement will be subject to a four (4) month hold period from the date of issuance. In addition, all 320,000 Related Shares issued will be subject to an eighteen (18) month, post "Qualifying Transaction" escrow release schedule pursuant to the Company's CPC Escrow agreement dated February 5, 2018, a copy of which is available under the Company's profile at www.sedarplus.ca. The Private Placement is subject to the final approval of the Exchange.