Mr. Matthew Coltura reports
STRAIGHTUP CLOSES NON-BROKERED PRIVATE PLACEMENT
Straightup Resources Inc. has closed its previously announced non-brokered private placement (see news release dated June 4, 2020).
The financing raised aggregate gross proceeds of approximately $630,000 through the issuance of 4,203,067 units at a price of 15 cents per unit. Each unit consists of one common share in the capital of the company and one-half of one common share purchase warrant, with each whole warrant entitling the holder thereof to purchase one common share at a price of 25 cents per common share for a period of 12 months from the issue date. In the event the closing price of the shares on the Canadian Securities Exchange is equal to or greater than 40 cents per share for a minimum of 10 consecutive trading days commencing four months and one day after the closing of the financing, the company may accelerate the expiry date of the warrants by providing notice to the holders thereof and, in such case, the warrants will expire on the 30th day after the date on which such notice is given by the company.
Staightup's chief executive officer and president, Matthew Coltura, commented: "After assessing the market conditions, the company has decided to close the financing for less than the originally announced amount, which will reduce the dilution to current shareholders. The funds raised under the financing will be sufficient to allow the company to proceed with the planned exploration work on its properties, and management of Straightup believes this to be in the best interests of its shareholders."
In connection with the financing, the company paid aggregate finders' fees consisting of $23,246.98 in cash and issued 154,979 non-transferrable finder warrants. Each finder's warrant entitles the holder thereof to purchase one common share at a price of 25 cents per common share for a period of 12 months from the issue date, subject to the acceleration provisions. Canaccord Genuity Corp. received finders' fees consisting of $9,082.50 cash and 60,550 finder warrants, Haywood Securities Inc. received finders' fees consisting of $9,712.48 cash and 64,749 finder warrants and PI Financial Corp. received finders' fees consisting of $4,452.00 cash and 29,680 finder warrant.
The net proceeds from the financing are intended to be used for property expenditures and for general working capital. All securities issued in connection with the financing are subject to a hold period of four months and one day in Canada.
About Straightup Resources Inc.
Straightup is engaged in the business of mineral exploration and the acquisition of mineral property assets in Canada.
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