Calgary, Alberta (FSCwire) - Softrock Minerals Ltd ("Softrock" or the "Company") today announced that it will be offering rights to holders of its common shares ("Common Shares") in Canada at the close of business on the record date of April 30, 2018, (the "Rights Offering Record Date") on the basis of one right for each common share held (the "Rights Offering"). Each right will entitle the holder to subscribe for one unit (a "Unit") of the Company upon payment of the subscription price of $0.02 per unit. Each Unit consists of one Common Share and one Common Share purchase warrant (a "Warrant"), with each Warrant exercisable into one Common Share at a price of $0.05 per share for a period of 24 months from the issuance date of the Units.
The Common Shares will commence trading on an ex-rights basis on April 27, 2018. Any holders of Common Shares purchased on an ex-rights basis will not be entitled to receive rights under the Rights Offering. As such, Common Shares must be purchased before the end of market trading hours on April 26, 2018 to be entitled to rights under the Rights Offering on the record date of April 30, 2018. The rights will expire at 4:00 p.m. (Calgary time) on June 7, 2018 (the “Expiry Time”), after which time unexercised rights will be void and of no value.
Shareholders who fully exercise their rights will be entitled to subscribe for additional Common Shares, if available as a result of unexercised rights prior to the Expiry Time, subject to certain limitations set out in the Company’s rights offering circular. The Company expects to close the Rights Offering promptly following the Expiry Time. Details of the Rights Offering will be set out in the rights offering notice and rights offering circular which will be available on the Company’s website and under the Company’s profile at www.sedar.com. The rights offering notice and accompanying rights certificate will be mailed to each registered eligible shareholder as at the Rights Offering Record Date. Registered shareholders who wish to exercise their rights must forward the completed rights certificate, together with the applicable funds, to the subscription agent, Computershare Investor Services Inc. ("Computershare"), on or before the Expiry Time. Shareholders who own their Common Shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions from their intermediary.
There are currently 23,759,146 Common Shares issued and outstanding. If all of the rights issued under the Rights Offering are validly exercised, there will be 47,518,292 Common Shares and 23,759,146 Warrants outstanding and the Rights Offering will have raise gross proceeds of approximately $475,000. Funds raised through the Rights Offering will be used for working capital and general corporate purposes.
The rights, and the Common Shares issuable upon the exercise of the rights, will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States or to U.S. Persons, as defined in Regulation S under the U.S. Securities Act. Accordingly, subscriptions will not be accepted from any shareholder who is a U.S. Person or resident in the United States.
FOR FURTHER INFORMATION, PLEASE CONTACT:
The Honourable Nick Taylor, President and Chief Executive Officer
Softrock Minerals Ltd.
Telephone: (403) 266-2605
Email: softrockminerals@shaw.ca
TSXV: SFT
The foregoing contains forward-looking information relating to the completion of the Rights Offering, the amount of proceeds from the Rights Offering and the use of such proceeds. Forward looking information is subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Such risks and other factors include, among others changes in world commodity markets or equity markets, the risks of the oil and gas industry, TSX Venture Exchange approval of the Rights Offering and other risks and uncertainties detailed from time to time in the Company's filings with Canadian securities regulatory authorities (available at www.SEDAR.com). Forward-looking statements are made based on various assumptions and on management's beliefs, estimates and opinions on the date the statements are made. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking information contained herein. The Company undertakes no obligation to update forward-looking statements if these assumptions, beliefs, estimates and opinions or other circumstances should change, except as required by applicable law.
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Source: Softrock Minerals Ltd (TSX Venture:SFT)
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