Further to the news release dated Nov. 18, 2019, Chatham Rock Phosphate Ltd. has closed the first tranche of a non-brokered private placement and has issued 647,631 units at a price of 15 cents per unit (17.7 New Zealand cents) for gross proceeds of $97,144.65. Each unit consists of one common share in the capital of the company and one transferable share purchase warrant.
Each warrant entitles the holder to acquire one common share at a price of 45 cents (53 N.Z. 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 (71 N.Z. 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.
A second tranche is expected to close in early 2020.
All securities issued pursuant to the private placement are subject to a hold period and may not be traded until April 21, 2020.
