Key points
- The company terminated the convertible note offering announced Jan. 16, 2019.
- It will instead sell up to eight million units at 12.75 Canadian cents each for gross proceeds of up to $1.02-million.
- Each unit includes one common share and a half warrant exercisable at 45 Canadian cents per share for two years from issuance.
- Proceeds will fund the environmental permit reapplication over the next year, with closing expected on or before Feb. 28.
Chatham Rock Phosphate Ltd. has terminated the convertible note offering described in the company’s news release dated Jan. 16, 2019. Instead, the company is proceeding with a non-brokered private placement of up to eight million units at a price of 12.75 Canadian cents per unit (14.2 New Zealand cents) for gross proceeds of up to $1.02-million (Canadian).
Each unit will consist of one common share in the capital of the company and one-half of one non-transferable share purchase warrant. Each whole warrant will entitle the holder thereof to acquire one common share at a price of 45 Canadian cents (50 New Zealand cents) per share at any time prior to the date that is two years from the date of issuance.
In the event that the common shares of the company trade on the TSX Venture Exchange at a closing price of greater than 60 Canadian cents (67 New Zealand cents) per common share for a period of 20 consecutive trading days at any time after four months and one day after the closing date of the private placement, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof by way of a news release and in such case the warrants will expire on the 30th day after the date of dissemination of the news release.
The proceeds of this placement will be used to progress the reapplication for the environmental permit during the next year.
Finders’ fees may be payable in cash to arm’s-length parties in connection with this placement as permitted under the policies of the TSX Venture Exchange. The private placement is subject to the acceptance by the TSX Venture Exchange and is expected to close on or before Feb. 28.
