Mr. Ross McElroy reports
FISSION CLOSES C$7.0 MILLION BOUGHT DEAL OFFERING
Fission Uranium Corp. has closed its previously announced bought deal financing consisting of 17,073,171 flow-through (FT) units at a price of 41 cents per FT unit for gross proceeds of $7-million, inclusive of the exercise of the full overallotment option held by the underwriters.
Red Cloud Securities Inc. acted as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters, including Eight Capital and Canaccord Genuity Corp.
Each FT unit consisted of one common share of the company to be issued as flow-through shares within the meaning of the Income Tax Act (Canada) and one-half of one common share purchase warrant. Each warrant shall entitle the holder to purchase one common share of the company at a price of 50 cents at any time on or before 5 p.m. on Dec. 21, 2022. The warrant shares issued on exercise of the warrants will not be flow-through shares for the purposes of the Income Tax Act.
The underwriters received a cash commission of 6.0 per cent of the gross proceeds of the offering, subject to a reduced cash commission being payable on sales to certain members of the president's list.
Proceeds from the sale of FT units will be used to incur Canadian exploration expenses as defined in Subsection 66.1(6) of the Income Tax Act and flow-through mining expenditures as defined in Subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than Dec. 31, 2020, in the aggregate amount of not less than the total amount of gross proceeds raised from the sale of FT units.
The offering was completed pursuant to prospectus supplement to the company's base-shelf prospectus dated Dec. 7, 2020.
About Fission Uranium
Fission Uranium is a Canadian-based resource company specializing in the strategic exploration and development of the Patterson Lake South uranium property -- host to the class-leading Triple R uranium deposit -- and is headquartered in Kelowna, B.C.
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