Mr. Jason Powell reports
ORACLE COMMODITY HOLDING ANNOUNCES $105,000 PRIVATE PLACEMENT
Oracle Commodity Holding Corp. intends to complete a non-brokered private placement financing of up to 3.5 million units at a price of three cents per unit for gross proceeds of up to $105,000. Each unit consists of one common share of the company and one transferable common share purchase warrant, entitling the holder to acquire one additional share at an exercise price of six cents for a period of three years from the date of issuance.
Insiders of the company are expected to subscribe for up to two million units for aggregate gross proceeds of up to $60,000. The issuance of units to the insiders is considered a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company anticipates relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to related-party transactions under sections 5.5(a) and 5.7(1)(a), respectively, of MI 61-101, as neither the fair market value of the units to be acquired by the participating insiders nor the consideration to be paid by such insiders are anticipated to exceed 25 per cent of the company's market capitalization. The company will file a material change report in respect of the related party transaction.
The company may elect to pay finders' fees to certain eligible finders in accordance with the policies of the TSX Venture Exchange.
The offering is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the offering are subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable Canadian securities laws and the policies of the TSX Venture Exchange.
The company intends to use the proceeds from the offering for general working capital.
The offering will not result in the creation of a new control person of the company and the company is not aware of any undisclosed material information.
About Oracle Commodity Holding Corp.
Oracle Commodity Holding is a mining royalty company holding royalties on several precious metal and critical mineral mining projects.
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