Chatham Rock Phosphate Ltd. is providing the following update:
The company’s recent rights issue raised $487,000, with 28.2 per cent of the issue being taken up by directors, management and other insiders. Management is now the largest shareholder group holding 12.3 per cent of issued capital. And this is the eighth time since 2010 that existing shareholders have provided continuing, sustained support to their company in a series of rights issues and share purchase plans. A total of 1,372,830 common shares were issued pursuant to the rights issue.
Chatham Rock is now proceeding with a non-brokered private placement of up to three million units at a price of 36 cents per unit for gross proceeds of up to $1.08-million.
- The company’s recent rights issue raised $487,000, with 28.2 per cent of the issue being taken up by directors, management and other insiders. Management is now the largest shareholder group holding 12.3 per cent of issued capital. And this is the eighth time since 2010 that existing shareholders have provided continuing, sustained support to their company in a series of rights issues and share purchase plans. A total of 1,372,830 common shares were issued pursuant to the rights issue.
- Chatham Rock is now proceeding with a non-brokered private placement of up to three million units at a price of 36 cents per unit for gross proceeds of up to $1.08-million.
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 50 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 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 (together with the proceeds of the rights issue) will be used to progress the reapplication for the environmental permit during the next year. The application is expected to be substantially complete in 12 months.
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.
