Pan Global Resources Inc. (TSXV: PGZ | OTCQX: PGZFF) has announced the closing of an upsized C$6M non-brokered private placement financing.
The company announced early last month that it had arranged a non-brokered private placement financing of up to 10M units of securities at a price of C$0.20 per unit for aggregate gross proceeds of up to C$2M.
On 19 October 2023, Pan Global announced it would issue up to 30M units for aggregate gross proceeds of up to C$6M in an upsized offering. Each unit is comprised of one common share and one non-transferable common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of C$0.30 for a period of three years from closing of the offering, subject to acceleration of the expiry date of the term.
A total of 30,350,000 units were issued upon the close of this offering, for gross proceeds of C$6,070,000.
Additionally, two officers and one director of the company subscribed for and were issued a combined 776,280 units under the offering. These subscriptions each constituted a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions (MI 61-101).
The issuance of the units to the related parties was exempt from the valuation requirement of MI 61-101 in that the company’s shares are not listed on a specified market, and was also exempt from the minority shareholder approval requirements in that the fair market value of the consideration for the securities issued to the related parties did not exceed 25% of Pan Global’s market capitalization.
To find out more, please visit www.panglobalresources.com
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