Mr. Charlie Lamb reports
POTENT VENTURES ANNOUNCES FIRST CLOSING OF PRIVATE PLACEMENT
Potent Ventures Inc. has completed a first closing of a non-brokered private placement of up to $2-million. The company accepted subscriptions for 15.43 million units at a price of four cents per unit, raising gross proceeds of $617,200. Each unit consists of one common share and one share purchase warrant, entitling the holder to purchase an additional common share for five cents for a period of two years from the issue date. All of the securities issuable in connection with the offering will be subject to a hold period expiring four months and one day after the date of issuance.
Insider participation in the offering was for an aggregate amount of $27,000 comprising 675,000 units representing 4 per cent of the offering. Such participation is considered a related-party transaction within the meaning of Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The related-party transaction is exempt from minority approval and valuation requirements pursuant to the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as neither the fair market value of the securities to be issued under the offering nor the consideration to be paid by the insiders exceeds 25 per cent of the company's market capitalization.
In connection with the closing of the private placement, the company paid finders' fees of $30,416 in cash and issued 860,400 finders' warrants. The finders' warrants hold the same terms as the warrants issued as part of the units. A second tranche closing is expected to take place on or before Nov. 10, 2021. The proceeds will be used for general working capital and potential acquisitions.
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