FISSION URANIUM CORP. (TSX: FCU) (OTCQX: FCUUF) (FRANKFURT: 2FU) is pleased to announce that it has closed its previously announced bought deal financing consisting of 17,073,171 flow-through units at a price of C$0.41 per FT Unit for gross proceeds of C$7.0 million, inclusive of the exercise of the full over-allotment option held by the Underwriters.
Red Cloud Securities Inc. acted as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters including Eight Capital and Canaccord Genuity Corp.
Each FT Unit consisted of one common share of the Company to be issued as “flow-through shares” within the meaning of the Income Tax Act (Canada) and one half of one common share purchase warrant. Each Warrant shall entitle the holder to purchase one common share of the Company at a price of C$0.50 at any time on or before 5:00 pm on December 21, 2022. The Warrant Shares issued on exercise of the Warrants will not be “flow-through shares” for the purposes of the Income Tax Act.
The Underwriters received a cash commission of 6.0% of the gross proceeds of the Offering, subject to a reduced cash commission being payable on sales to certain members of the president’s list.
Proceeds from the sale of FT Units will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act. Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2020, in the aggregate amount of not less than the total amount of gross proceeds raised from the sale of FT Units.
The Offering was completed pursuant to prospectus supplement to the Company’s base shelf prospectus dated December 7, 2020.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Fission Uranium
Fission Uranium Corp. is a Canadian based resource company specializing in the strategic exploration and development of the Patterson Lake South uranium property – host to the class-leading Triple R uranium deposit – and is headquartered in Kelowna, British Columbia. Fission’s common shares are listed on the Toronto Stock Exchange and trade on the OTCQX marketplace in the U.S.
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We acknowledge the [financial] support of the Government of Canada.