03:44:10 EDT Fri 03 May 2024
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Jinhua Capital Corp (3)
Symbol JHC
Shares Issued 56,637,859
Close 2024-02-27 C$ 0.025
Market Cap C$ 1,415,946
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Jinhua Capital begins marketing campaign

2024-02-28 09:47 ET - News Release

Mr. Chris Thomas reports

JINHUA INITIATES MARKETING CAMPAIGN

Jinhua Capital Corp. has begun to roll out an extensive marketing plan to better inform the investment community about its critical mineral exploration projects in Quebec and the related development of these assets. The company will begin its marketing campaign with a digital media focus, which will lead to a more traditional investor relations platform as the company ramps up its critical mineral exploration in the province of Quebec. All marketing service providers engaged by the company remain subject to approval by the TSX Venture Exchange. The company has also engaged market makers, completed a non-brokered private placement, and issued options to directors, officers and consultants. Jinhua has also launched its initial website.

Digital marketing initiative

To co-ordinate the initial marketing campaign, Jinhua is pleased to announce that it has retained Aleem Fidai and his firm Senergy Communications Capital Inc. to provide digital media and capital markets communications services to the company. Senergy is a digital marketing firm that will assist with on-line communications and strategies with the goal of increasing awareness of the company and its projects.

"Aleem and his team at Senergy are the perfect group to co-ordinate our digital media rollout as they have the expertise in getting the message of the importance of graphite in the development of electric vehicle (EV) batteries to non-traditional resource investors," stated Chris Thomas, chief executive officer of Jinhua. "This digital media focus will complement more traditional investor relations and marketing that will develop in the near future."

"We are thrilled to collaborate with Jinhua to showcase their compelling narrative to the investment community," exclaimed Aleem Fidai, CEO of Senergy. "Graphite holds a pivotal role in the EV transformation, and we are eager to educate investors about its significance, particularly in the context of the company's promising Indigo graphite project situated in the Saint-Michel-des-Saints municipality, Quebec."

In consideration for these services, Jinhua has agreed to pay Senergy $5,000 per month for a six-month period and will issue 300,000 options exercisable at five cents per share for a period of five years and vest quarterly in accordance with TSX Venture Exchange policies. Subject to TSX-V approval, the engagement of Senergy may be extended by mutual consent of the company and Senergy. Other than the 300,000 stock options, to the company's knowledge, Senergy does not have any interest, directly or indirectly, in Jinhua or its securities or any right or intent to acquire such an interest. The agreement with Senergy is subject to TSX-V approval. Additionally, Senergy and its management operate at an arm's length from the company.

Market-making services

In addition, Jinhua has, subject to regulatory approval, retained Venture Liquidity Providers Inc. (VLP) to initiate its market-making service to provide assistance in maintaining an orderly trading market for the common shares of the company.

The market-making service will be undertaken by VLP through a registered broker, W.D. Latimer Co. Ltd., in compliance with the applicable policies of the TSX Venture Exchange and other applicable laws. For its services, the company has agreed to pay VLP $5,000 per month. The agreement may be terminated at any time by the corporation or VLP after three months. The corporation and VLP act at arm's length, and VLP has no present interest, directly or indirectly, in the corporation or its securities. The finances and the shares required for the market-making service are provided by W.D. Latimer. The fee paid by the company to VLP is for services only.

VLP is a specialized consulting firm based in Toronto providing a variety of services focused on TSX-V-listed issuers.

Non-brokered private placement

Additionally, Jinhua is happy to announce that it has closed the third tranche of its non-brokered private placement consisting of 1.95 million flow-through units at a price of six cents per FT unit for gross proceeds of $117,000.

Each FT unit will consist of one flow-through common share of the company as defined in the Income Tax Act (Canada) and one-half of a common share purchase warrant. Each whole FT warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the company at a price of 10 cents per FT warrant share for a period of 18 months from the closing of the offering, subject to acceleration of the expiry date to 15 days in the event that the price of the company's common shares close at or above 25 cents for 10 consecutive trading days.

The company will also pay eligible finders: (i) a cash fee of $6,160 equal to 8 per cent of the gross proceeds raised from subscribers introduced by the finder; (ii) issue 51,333 finder warrants as is equivalent to 4 per cent of the number of FT units, as applicable sold to subscribers introduced by the finder; and (iii) issue 51,333 of the company's common shares as is equivalent to 4 per cent of the number of FT units, as applicable sold to subscribers introduced by the finder. Each finder warrant shall entitle the holder thereof to purchase one additional common share at a price of 10 cents for 12 months from the closing of the offering.

The gross proceeds raised from the issuance of the FT units will be used by the company to incur critical mineral exploration expenditures on the company's resource claims in the province of Quebec and will constitute Canadian exploration expenses as defined in the Income Tax Act (Canada).

The company also announces it has granted two million stock options to certain directors, officers and consultants. The options are exercisable at a price of five for a period of five years from issue date. All of the options vest immediately and were granted pursuant to the company's stock option plan.

Closing of the offering and granting of the options are subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the TSX Venture Exchange. All securities issued will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation.

And last but not least, the company has launched its first ever website. The company encourages investors and interested parties to please go to the website and sign up for information updates as the company expands its exploration programs.

About Jinhua Capital Corp.

Jinhua is a mineral exploration company focused on exploring the Pluto gold and base metals property located in the Dolomieu and Daubree townships of Quebec. From time to time, the company may also evaluate the acquisition of other mineral exploration assets and opportunities.

We seek Safe Harbor.

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