Company will sell stock-and-warrant units, flow-through shares
By Angela McDaniels
Tacoma, Wash., May 16 – Encanto Potash Corp. said it will raise up to C$2.7 million through two non-brokered private placements.
In the non-flow-through private placement, the company will sell up to 20.95 million units for C$0.105 each for a total of up to C$2.2 million.
Each unit consists of one common share and one 30-month warrant. The warrant strike price is C$0.16, which is a 23.1% premium over the company’s May 13 closing share price.
In the flow-through private placement, the company will sell 3,125,000 flow-through common shares for C$0.16 each for a total of C$500,000.
Proceeds from the private placements will be used for general working capital and development purposes.
In addition to the non-flow-through private placement, the company will make up to C$525,000 of units available to existing shareholders of record as of May 13.
Encanto Potash develops potash properties and is based in Vancouver, B.C.
| Issuer: | Encanto Potash Corp.
|
| Issue: | Units of one common share and one warrant, flow-through common shares
|
| Amount: | Up to C$2,699,750
|
| Agent: | Non-brokered
|
| Pricing date: | May 16
|
| Stock symbol: | TSX Venture: EPO
|
| Stock price: | C$0.13 at close May 13
|
| Market capitalization: | C$46.18 million
|
|
|
| Units
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| Amount: | Up to C$2,199,750
|
| Units: | Up to 20.95 million
|
| Price: | C$0.105
|
| Warrants: | One per unit
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| Warrant expiration: | 30 months
|
| Warrant strike price: | C$0.16
|
|
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| Flow-through shares
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| Amount: | C$500,000
|
| Shares: | 3,125,000
|
| Price: | C$0.16
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