21:23:25 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Arctic Star Exploration Corp (4)
Symbol ADD
Shares Issued 62,962,054
Close 2021-04-05 C$ 0.085
Market Cap C$ 5,351,775
Recent Sedar Documents

Arctic Star closes $2-million private placement

2021-04-05 18:25 ET - News Release

Mr. Patrick Power reports

ARCTIC STAR ANNOUNCES CLOSING OF NON-BROKERED PRIVATE PLACEMENT

Arctic Star Exploration Corp. has completed its previously announced non-brokered private placement, as described in its press releases of Feb. 1, 2021, Feb. 4, 2021, Feb. 19, 2021, Feb. 24, 2021, March 2, 2021, and March 18, 2021, pursuant to which it has issued an aggregate of 40 million units at a price of five cents per unit for gross proceeds of $2-million. Each unit consists of one common share in the capital of the company and one non-transferable share purchase warrant. Each warrant is exercisable into one additional share at a price of 10 cents per share for a period of two years from the closing date.

The company paid cash finders' fees of an aggregate of $51,100 and issued an aggregate of 1,022,000 share purchase warrants to certain finders in connection with the closing of the private placement. Each finder's warrant is exercisable into one share at a price of 10 cents per share for a period of two years from the date of issuance in connection with the private placement.

The company intends to use the proceeds from the private placement for exploration on the Diagras diamond project and for general working capital. A certain insider of the company subscribed for a total of 1,734,000 units under the private placement, which is a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The issuances to the insiders are exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b) as the company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the related parties did not exceed 25 per cent of the company's market capitalization. The securities issued under the private placement and the shares that may be issuable on exercise of the warrants are subject to a statutory hold period expiring on Aug. 1, 2021.

© 2024 Canjex Publishing Ltd. All rights reserved.