Canadian Metals Closes Final Tranche of a Private Placement
April 15., 2016 (Source) — Canadian Metals Inc. (the “Corporation”) (CSE:CME) is pleased to announce that it has closed a final tranche of $ 90,000 (the “Final Tranche”) of a non-brokered private placement (the “Private Placement”) for total gross proceeds of $600,000 (the “Private Placement”). The Private Placement consisted of 4,000,000 units (the “Units”) at a price of $0.15 per Unit, each Unit being comprised of one common share and one common share purchase warrant, entitling the holder to acquire one common share of the Company for a period of eighteen (18) months at an exercise price of $0.25 per share.
The net proceeds from the Private Placement will be used to fund working capital.
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As part of this Final Tranche, Investissements MSL Inc., a company controlled by Mr. Louis Lessard, an insider of the Corporation, subscribed to 249,999 Units. The participation of Investissements MSL Inc. in the Private Placement is considered a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Corporation is relying on Sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, for exemptions from the formal valuation and minority approval requirements under MI 61-101, as the fair market value of the Shares issued to Investissements MSL Inc. pursuant thereto exceeded 25% of the Corporation’s market capitalization.
All Shares issued pursuant to this Final Tranche will be subject to a hold period of four months and one day from their date of issuance and as such are restricted from trading until August 16, 2016.
About Canadian Metals
Canadian Metals Inc. is focused exclusively on the development of its Langis Project, a high-purity silica deposit located in the province of Quebec. The Company is rapidly positioning itself to eventually become a North American silicon metal producer.
Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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