Due to investor enquiries after the closing of the company’s July private placement, Chatham Rock Phosphate Ltd. is proceeding with a further non-brokered private placement of up to nine million units at a price of 11 cents per unit for gross proceeds of up to $990,000 ($1,125,000 New Zealand dollars) pursuant to a price reservation filing made earlier in August and subject to regulatory approvals.
Each unit will consist of one common share in the capital of the company and one transferable share purchase warrant, transferable subject to applicable securities legislation. Each warrant will entitle the holder thereof to acquire one common share at a price of 45 cents per share at any time prior to the date that is five 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 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 such news release.
The common shares and warrants issued pursuant to this proposed offering are subject to a hold period of four months plus one day after the closing dates of the offering as provided by securities legislation.
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 Aug. 31, 2021. Eligible investors are encouraged to contact the company’s offices immediately if they wish to participate.
