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by Stockwatch Business Reporter
The TSX Venture Exchange
fell 3.37 points to 570.79. Sean Mager and John Williamson's first capital pool shell, Cortus Metals Inc. (CRTS: halted), has released two updates in connection with its qualifying transaction, which is a mining deal. For its QT, the shell is acquiring two exploration properties, called Grayson and Powerline, both in Nevada. The shell must pay $169,400 and issue one million shares to the seller of both properties, Intermont Resources LLC, which is controlled by Clay Newton, a geologist in Nevada.
For the shell's first update, it is selling a $1-million private placement at 25 cents. It will use the proceeds for exploration at Grayson and Powerline. For its second update, Cortus plans to split its shares 2 for 1, shortly after it closes its QT. Therefore, the private placement subscribers will have an adjusted cost of 12.5 cents.
Cortus listed in November, 2019, with a $220,000 initial public offering at 10 cents. Considering the proposed share split, its IPO investors will need five cents to break even. They must be pleased; QTs tend to involve rollbacks rather than splits. As well, Cortus is moving along with its QT more quickly than most shells. It expects to close its QT this month, just three months after listing; most capital pool shells take about two years to close a deal.
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