Mr. Robert Luffman of Gracetree reports
GRACETREE INVESTMENTS, LLC FILES EARLY WARNING REPORT
Gracetree Investments LLC has filed an early warning report in respect of its acquisition on Feb. 27, 2017, of 3,333,333 units of Comstock Metals Ltd., by way of a private placement at a price of 15 cents per unit for a total subscription price of $500,000.
Each unit comprised one common share of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one additional common share of the company at an exercise price of 20 cents per share for a period of 24 months from the closing date.
Immediately prior to the closing date, Gracetree owned 2.5 million shares and 1.25 million warrants. This represented approximately 4.42 per cent of the issued and outstanding shares of the company on a non-diluted basis and approximately 6.49 per cent on a partially diluted basis.
As a result of this purchase, Gracetree now beneficially owns 5,833,333 shares and 4,583,333 warrants. This represents approximately 7.95 per cent of the issued and outstanding shares of the company on a non-diluted basis and approximately 13.35 per cent on a partially diluted basis.
The securities were acquired for investment purposes. Gracetree has a long-term view of the investment and may, depending on market and other conditions, or as future circumstances may dictate, from time to time, on an individual or joint basis, increase or dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position. Gracetree may also from time to time seek to have certain indebtedness owing by the company to Gracetree settled through the issuance of shares.
This news release is being issued in accordance with National Instrument 62-103 -- the early warning system and related takeover bid and insider reporting issues -- in connection with the filing of an early warning report dated May 9, 2017. A copy of the early warning report relating to Gracetree's acquisition of the units will be available under the company's profile on SEDAR. A copy of the early warning report being filed by Gracetree may also be obtained by contacting the company at 604-639-4533.
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