Encanto Potash settles its C$3.07 million placement of units, shares

Company sold stock-and-warrant units, flow-through shares

By Devika Patel

Knoxville, Tenn., June 3 – Encanto Potash Corp. said it raised C$3.07 million through a non-brokered private placement of stock and units. The deal priced for up to C$2.7 million on May 16.

The company sold 24,503,000 units one common share and one 30-month warrant at C$0.105 per unit for a total of C$2.57 million and 3,125,000 flow-through common shares at C$0.16 each for a total of C$500,000.

The warrant strike price is C$0.16, which is a 23.1% premium over the company’s May 13 closing share price of C$0.13.

Proceeds will be used for general working capital and development purposes.

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:	C$3,072,815
Agent:	Non-brokered
Pricing date:	May 16
Settlement date:	June 3
Stock symbol:	TSX Venture: EPO
Stock price:	C$0.13 at close May 13
Market capitalization:	C$46.18 million
Units
Amount:	C$2,572,815
Units:	24,503,000
Price:	C$0.105
Warrants:	One per unit
Warrant expiration:	30 months
Warrant strike price:	C$0.16
Flow-through shares
Amount:	C$500,000
Shares:	3,125,000
Price:	C$0.16

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