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Zenyatta Ventures Ltd
Symbol ZEN
Shares Issued 66,204,607
Close 2018-12-21 C$ 0.395
Recent Sedar Documents

Zenyatta Ventures closes $3-million private placement

2018-12-21 16:16 ET - News Release

Mr. Brian Bosse reports

ZENYATTA ANNOUNCES CLOSING OF FLOW-THROUGH FINANCING AND SHARES FOR DEBT

Zenyatta Ventures Ltd. has closed its previously announced private placement of flow-through common shares of the company. The company raised $3-million in respect of the offering, which will be used to finance bulk sampling, environmental assessment and community engagement work on the company's Albany graphite project.

The offering consisted of the issuance of 7.5 million flow-through common shares at a price of 40 cents per flow-through common share for aggregate gross proceeds of $3-million. Finders' fees in an aggregate amount of $141,300 were paid by the company in connection to the offering.

Certain insiders of the issuer participated in the offering. Such participation represents a related party transaction under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions, but the transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the subject matter of the transaction, nor the consideration paid, exceed 25 per cent of the issuer's market capitalization. The offering was approved by all of the independent directors of the company.

The flow-through common shares issued in connection with the offering will be subject to a hold period until April 22, 2019, in accordance with applicable securities laws.

Shares-for-debt agreements

Zenyatta Ventures has closed its previously announced shares-for-debt transactions with various individual and trade creditors of the company. The company issued 151,209 common shares to certain individual creditors at a deemed price of 55 cents per common share in settlement of the aforementioned amount. The company also issued 477,753 common shares to certain trade creditors at a deemed price of 45 cents per common share in settlement of the aforementioned amount.

The common shares issued in connection with the shares for debt transactions will be subject to a hold period until April 22, 2019, in accordance with applicable securities laws.

We seek Safe Harbor.

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