Mr. Sonny Janda reports
SIERRA COMPLETES OVERSUBSCRIBED NON-BROKERED PRIVATE PLACEMENT
Sierra Growth Corp. has completed its non-brokered private placement raising proceeds of $751,140 through the sale of 12,519,000 units at six cents per unit. Units comprise one common share and one common share purchase warrant. Each warrant is exercisable at eight cents for two years after closing, subject to an accelerated 30-day expiry date in the event the company's shares trade at or above 25 cents for 10 consecutive days.
Sierra's chief executive officer, Sonny Janda, commented: "This oversubscribed financing will allow Sierra to advance our exciting new projects in western Nevada with the aim of beginning exploration work in early spring 2021. I look forward to providing the market with more detailed guidance in the coming weeks regarding this exploration program."
The securities issued pursuant to this placement are subject to a statutory hold period of four months and a day ending on June 19, 2021. The company will pay finder's fees of $3,498.60. Proceeds of the offering will be used for exploration and general working capital.
Certain directors of the company have participated in the private placement and are considered related parties to the company under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions.
This private placement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of any securities issued to nor the consideration paid by those directors will exceed 25 per cent of the company's market capitalization
We seek Safe Harbor.
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