(Power Nickel, 12.Apr.2024) — Power Nickel Inc.(TSXV: PNPN) (OTCBB: CMETF) (Frankfurt: IVV) closed its previously announced private placement of common shares at $0.20 per common share. The company has issued 11,889,875 common shares for gross proceeds of $2,377,975. The private placement is subject to final approval of the TSX Venture Exchange.
In connection with the private placement, the company agreed to pay finder’s fees to two registered dealer firms in the amount of $75,064 cash and 117,250 finder’s warrants, exercisable for a period of 18 months from closing at an exercise price of $0.20 per common share. All securities issued in connection with the private placement have a statutory hold period of four months and one day from the date of issuance.
The proceeds of the private placement will be used for general corporate purposes and as disclosed in the company’s 4 Apr. 2024 news release.
All four of the directors of the company participated in the private placement for aggregate investment of $333,125, which is considered a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).
The company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 as the company is not listed on a specified market (as set out in Section 5.5(b) of MI 61-101) and the aggregate fair market value of the common shares being subscribed to by the insiders does not exceed CAD $2,500,000 (as set out in Section 5.7(1)(b) of MI 61-101).
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