Mr. Stuart Ross reports
NEW ENERGY METALS ANNOUNCES CLOSING OF FULLY SUBSCRIBED FINANCING
New Energy Metals Corp. has completed a non-brokered private placement financing of two million units at a price of five cents per unit for gross proceeds of $100,000. Each unit consists of one common share in the capital of the company and one common share purchase warrant, with each warrant entitling the holder thereof to purchase one common share in the capital of the company for a period of 24 months at an exercise price of 10 cents per share.
The company did not pay any finders' fees in connection with the offering. All securities issued in connection with the offering are subject to a four-month-and-one-day hold period in Canada, during which time the securities may not be traded. The offering is subject to TSX Venture Exchange and other regulatory approval.
Certain insiders of the company subscribed for $41,000 worth of units in the offering, or 820,000 units. Each of these transactions constitutes a related-party transaction as such term is defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company is relying on the exemptions from the formal valuation and minority approval requirements under MI 61-101 and, in particular, sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the transactions is not more than 25 per cent of the company's market capitalization.
The company expects to use the net proceeds from the offering for general corporate purposes, including the settlement of certain outstanding accounts payable.
About New Energy Metals Corp.
New Energy is focused on the exploration and development of energy metals.
We seek Safe Harbor.
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