ELCORA ADVANCED MATERIALS CORP. (TSX-V:ERA) (Frankfurt:ELM) (OTC: ECORF), is pleased to announce that it has closed the first tranche of its private placement pursuant to a price reservation Form 4A filed with the TSX Venture Exchange on August 27, 2021. The Company issued 22,510,000 units at a price of $0.05 per Unit for gross proceeds of $1,125,500 for the first tranche.
Pursuant to the Form 4A, the Company may issue up to 60,000,000 Units at $0.05 per unit to raise total gross proceeds of up to $3,000,000.
Each Unit will consist of one (1) common share and one share purchase warrant. Each Warrant will be exercisable for an additional share at a price of $0.20 for a period of eighteen (18) months from issuance. In the event that the common shares of the Company trade at a closing price of greater than $0.50 per Share for ten (10) consecutive trading days, the Company may accelerate the expiry date of the Warrants to expire on the 30th day after the date on which such notice is given to the warrant holders.
No finder’s fees will be paid with respect to this Offering.
One of the Company’s Directors participated in the first tranche of the Offering and will acquire an aggregate of 680,000 Units. The participation by insiders in the Offering is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101. The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25% of the Company’s market capitalization.
The Company intends to use the net proceeds for general working capital purposes. All securities issued pursuant to the offering will be subject to a statutory hold period of four months plus a day from issuance in accordance with applicable securities laws. Closing of the Offering is subject to receipt of all necessary regulatory approvals and final acceptance by the TSX Venture Exchange.
About Elcora Advanced Materials Corp.
Elcora was founded in 2011 and has been structured to become a vertically integrated graphite & graphene company. Elcora processes, refines, and produces both graphite & graphene. As part of the vertical integration strategy Elcora is securing high-grade graphite and graphene precursor graphite from operations in Sri Lanka and other countries which are already in production. Elcora has developed a cost-effective process to make high-quality graphite, graphite products and graphene that are commercially scalable. This combination means that Elcora has the tools and resources for graphite and graphene vertical integration.
Argo Gold Inc. (CSE: ARQ) (OTCQB: ARBTF) (FSE: P3U) (“Arg... READ MORE
Gowest Gold Ltd. (TSX-V: GWA) announced today that, effective O... READ MORE
Roscan Gold Corporation (TSX-V: ROS) (FSE: 2OJ) (OTC Pink: RCGCF... READ MORE
Galiano Gold Inc. (TSX: GAU) (NYSE American: GAU) reports prelimi... READ MORE
West Red Lake Gold Mines Inc. (CSE: RLG) (OTCQB: RLGMF) (FSE: H... READ MORE
We acknowledge the [financial] support of the Government of Canada.